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Could this be purposeful on LG's part? Amazon Wireless sells the LG Optimus G (with essentially the same parts) at $599 unlocked. The Nexus 4 doesn't come in a 32gb model, but the 16gb phone sells for only $349. Unless LG is getting one hell of a kickback from Google, why would they want to cannibalize their existing sales with a much lower margin product?

In a sense, it's not that relevant. People are not in the market for an lg and decide to get one of these. People are in the market for a €300+ phone and pick one. I doubt this will cannibalise LG any more than it does any other high end android/phone manufacturers.

That said, if these were being pushed in stores today, I imagine they would be picking up a nice amount of the Christmas trade. Especially since an unlocked phone makes a nicer gift.

Well, yes, but if LG is at production capacity (unknown, but it's possible) it's pretty easy to see which channel it will fill first. The question isn't which one will sell more overall, it's given an existing quantity of product which orders will you fill first.

Is it lower margin? What is the cost-per-unit to Amazon Wireless to purchase a lot of Optimus Gs?

To elaborate on this point, wholesale price is often ~40% less than MSRP, so LG may get $349 from a Nexus 4 and $360 from an Optimus G — not that different.

$10 per unit becomes a bigger deal when you sell millions of units.

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