How then is Google selling the 16 GB model [of the Nexus 4] for just $349? Easy, Google isn’t making any money on the hardware. In case you haven’t noticed by now, Google is an advertising company. During the third quarter of 2012, 94% of their revenue came from ads. In other words, Google’s in the business of showing you little blue links for <removed>. They make compelling services that are addictive and charge nothing for them because at the end of the day it’s the ads that are displayed within those services that make the company money.

Talking about electronics stores, the Spanish retailer Phone House has recently said that they’re not going to sell the Nexus 4 because LG wants them to price it at 599 EUR. Meanwhile, Google is selling the Nexus 4 in Spain for 350 EUR online.