BLOG: Why are Android smartphones so expensive?

Having analyzed the smartphone market most punters would eventually end up asking the same question: Why is there no actual difference in price between Android smartphones and Apple’s iPhones? For an average Joe almost identical prices for various smartphones are no big deal. But for inquisitive minds - it's an issue well worth researching.

The real reason for price equality lies much deeper, right in the financial strategies of the big manufacturers. When purchasing a new iPhone, the customer mainly pays for three things: hardware, software and technology. Apple makes everything themselves, but Samsung and Motorola, for instance, focus on hardware only: the Android OS is provided by Google for free. Google makes its money from advertising, not from selling the OS. Logically, this means that all Android smartphones should cost a lot less than Apple’s iPhones.

Theoretically, Android powered smartphone makers are in a position to start distributing Android smartphones at a considerable discount to the iPhone, but they are not. The reason behind it? Who knows.. What do you think?