QUOTE(G-17 @ Nov 4 2012, 09:59 PM)
Sadly, this is currently happening in a lot of EU countries. I've chatted with a few people who live in Spain, Austria and other countries, and they all say LG is marking up the price like crazy (€550+ in Austria, for example). Mots of them are trying to get it from the German Play Store where it's around €350+
To me, half the blame lies with Google. They know that the International market is is much more open to Android, especially those countries where there are no carrier subsidies and people mostly buy unlocked devices. They know that the international market doesn't have LTE set up just yet (mainly because HSDPA+ in may EU countries is almost as fast as US LTE). But they still don't realize that their distribution model is letting them down. They could have sold much more Nexus 7's if it were sold via Play in more countries, and now they're repeating the same mistake for the Nexus 4.
Yeah, and enjoy it for 5 or 6 months before a new Nexus handset comes out

Anyway, since the beginning, Nexus was never meant to be really a consumer device. It was and should be Developers' developing platform. Since Google is selling them that cheap, what can the manufacturer expect? Selling them at double the price? Will Google even lose that much profit without playstore in those countries? I doubt that.
*I mean... If I sell a phone at 300USD in PlayStore in US, will any user be spending another 300USD on Google services? I believe Google won't be getting 100% profit from their services so it's kinda too over to price it at double the price. Not to say that Google will make 100% (of the phone's price) profit less by selling them at the playstore price.

Get what I'm trying to tell?*
I did checked some speedtest done on Galaxy Nexus LTE version. It's crazily fast! 40Mbps down 10Mbps up

That's HSPA+ speed already but I believe it can go higher with LTE.
Anyway, HSPA+ or LTE not that feasible in Malaysia since the telcos don't have the bandwidth to cope with that usage and also won't be offering unlimited plans since Malaysian is demanding more international bandwidth than local bandwidth which is bloody expensive