Google recently launched their new Google Nexus 4 smartphone, the device is made by LG and Google are selling it from their Google Play store for 299 Euros for the 8GB model and 349 Euros for the 16GB model.
According to a recent report by The Next Web, Google may actually be subsidizing the price of the handset when it is sold direct through Google Play, as one Spanish retailer has been given a different price by LG for the handset.
According to Spain’s Phone House, LG have given them a recommended retail price for the new Google Nexus 7 of 599 Euros, which is double what Google are selling the device for.
The retailer has decided not to sell the Google Nexus 7 because of the high price compared to what Google are selling it for, so it could be that Google is actually subsidizing each handset they sell, or they could be selling it at cost.
Source The Next Web