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Nexus 5 petition to Google

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wideasleep1
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Originally Posted by VVV850 View Post
90% percent of you don't know what you are talking about even if this has been pointed out already in the past.

The nexus 5 is made by LG and is subsidized by Google where the play store is available for making phone purchases.

Where it isn't available, like in my country, it is being sold by and imported by LG which makes the phone 90eur more expensive. Being in an EU country intra EU taxes don't exist and only the difference in VAT taxes are applicable. Regardless the price is higher not because of taxes but because of profit.

In other countries where neither Google nor LG sell it, the price is higher because no one can tell the importer what prices to apply. So, if there is demand the price is as high as the monopoly governs. Of course there are taxes but excepting Brazil and the ps4 debacle there are few in these extreme situations.
So what the OP wants is that Google expand their Play services to his country to level out the price of his next Nexus phone to a product with taxes and transport and with minimum PROFIT! Not like LG in my country that is charging 90eur more for a phone which sells in Germany carrying the exact same taxes.

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---------- Post added at 03:39 AM ---------- Previous post was at 03:29 AM ----------



You know that by buying it overseas or from anywhere outside the country implies adding the same exact import taxes because you are in fact importing.

You cannot bypass import taxes that is why Sony, the official manufacturer and importer for Brazil, is forced to sell it in Brazil at that price. Sony is making the exact same profit as it does in other countries.

If it were another importer, not Sony, then you could have blamed the company for abuse by selling it with a high margin and import it yourself.

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I don't know which 90% you're referring to, because most of this has already been covered in this very thread. Regardless, those evil VAT/duties would still be due if Play imported and sold in those countries, correct? I still say the complaints should fall on those authorities that are indeed gouging their public, With regard to third-party sellers, it's really supply/demand market forces, not a 'monopoly', and very little can be done about it..in fact economies depend on it.
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VVV850
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Originally Posted by wideasleep1 View Post
I don't know which 90% you're referring to, because most of this has already been covered in this very thread. Regardless, those evil VAT/duties would still be due if Play imported and sold in those countries, correct? I still say the complaints should fall on those authorities that are indeed gouging their public, With regard to third-party sellers, it's really supply/demand market forces, not a 'monopoly', and very little can be done about it..in fact economies depend on it.
Correct, you cannot resolve the taxes by having a Google play store in your country. You can only be sure that, if you buy it from the play store, you buy it at the same price + tax differences as in any other country, thus excluding the individual extra profit imposed by third party importers. In my case LG itself which sells through a couple of shops resulting in a monopoly by price fixing.

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wideasleep1
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Originally Posted by VVV850 View Post
Correct, you cannot resolve the taxes by having a Google play store in your country. You can only be sure that, if you buy it from the play store, you buy it at the same price + tax differences as in any other country, thus excluding the individual extra profit imposed by third party importers. In my case LG itself which sells through a couple of shops resulting in a monopoly by price fixing.

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We agree mostly...but simply setting some random price by any given seller is not a monopoly, as there are many sellers worldwide. In economics, a monopoly is typically a sole supplier selling at prices that do not reflect real-market competition. You simply have a supply/demand price inflation (which is really an asking price, try to haggle). Cheers!
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VVV850
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We agree not mostly but completely. In my previous post I was mentioning that in our country it is evident that for the nexus 5 it is a monopoly. 2 reasons: only one importer, LG, and very few sellers which agreed to have the same price for the phone. So no throwing prices randomly or having a hint of competition.

In the beginning they had a higher by 150eur price, but people started buying it from countries with play store. The price + shipping was lower. So the sellers reduced the price to be just over the it but having the benefit of resolving your warranty claims locally.

A Google play store would have given me the ability to buy it cheaper reducing the third party seller's profits.

Cheers

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Well if i could import one and have it shipped to me i wouldn't have created this thread and petition

Telecommunication apparatuses are subject to import tax in my country

Lastly, Google does not subsidize nexus devices by any means.... They don't even lose a penny. Do you know how much does it cost to build a Phone? Less than $250, if I recall, ifixit said that the nexus 5 costs around $200 to build

What makes them expensive is Profit margin, Google on the other hand only takes a small amount of Profit, less than 10%

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And contrary to the popular belief, Google play content sales revenue alone is not enough to cover up the loss if google does indees sell nexus devices at lost (which is not likely)

Why can't they sell it in as many as countries as possible? They don't want money? Besides, we who live in a developing countries should be the priority. In developing markets price is a sensitive topic

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Why should a developing market be the priority when an established market is already in place?

Explain the logic (or lack there of).
 
hikarugo
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Well it's not really because of the taxes bcs in my country there is only $100 price difference between 16 GB Nexus 5 and 32 GB LG G2. If it's bcs of the tax, the price difference will be like in other countries, which is quite a difference.

Basically it's bcs LG is the one who sells it. The point is that even in one same country, a same Nexus 5 may cost $100 cheaper if it's sold by Google than that of sold by LG.

How can you say that it's caused by the tax?

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Well those in developed markets are able to shell out more money than those in developing markets, thus, developing markets should get a cheaper price. Sadly the reality is the other way around

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