AndroidGuys

Speaking with the press earlier today, Andy Rubin said that software costs represent about 20 percent of a phone’s manufacturing costs and that a manufacturer deciding to choose Android as the mobile platform could save that much on development.

Theoretically, those savings would be passed along to the cell phone carriers and on to the end users.  This means lower phone costs and/or little-to-no subsidizing taking place.

Recent trends and forecasts are showing more people looking to buy phones directly and choose the network they want the phone to run on.  It’s very likely that you’ll be able to pick up your next phone at Best Buy and activate with whatever carrier you feel offers the best package.  If Rubin’s figures are accurate, then your $500 phone will be $400 without having to sign a contract.  Imagine how inexpensive phones would be if they were subsidized too.  Throw a mail-in rebate here, and instant savings coupon there, and your high end phones might only end up around $150 before it’s all done.

So where do companies like T-Mobile and Sprint make money with their Android line?  It’s in the services.  Even with free programs and features that take advantage of 3G, 4G, LTE, or WiMax, you’ll need to sign up with one of their data plans which may end up around $25-$30 per month.  Not terrible for one person, but if you want your entire family connected with each other, it could add up quickly.

Getting back to Andy Rubin, he said that Android handsets are expected to come to market at the same time in most geographies and that it’s in its “final stages of testing”, and is being certified by carriers now.