Cell Phone Prices

Google just released their Nexus One phone today. I was excited to see it until I saw the price. $530 for the phone, or $180 with a 2 year contract. How do they expect people to "choose their phone first, then their carrier" if the cost of phone itself far outweighs practicality.

The phone cannot possibly cost that much to produce. I would price it at $300 maximum.

The same can be said about Ipods as well. I can buy an Ipod touch for $200. Or I can buy an "unlocked" Iphone (which is exactly the same I might add) for $500 - $700. You cannot possibly tell me that the technology for making a phone call costs an extra $300.

I call shenanigans.