Why the Google-Motorola Nexus 6 is priced $300 more than the Google-LG Nexus 5
Why the Google-Motorola Nexus 6 is priced $300 more than the Google-LG Nexus 5
The dramatic price increases on the Nexus devices represents a strategic shift for Google.

The Google's new showcase smartphone, the Nexus 6, boasts a nearly 6-inch screen, eclipsing the 5.5-inch display on the iPhone 6 Plus that Apple began selling last month.

Google is charging a comparable price for the Nexus 6, with prices beginning at $649 for a phone without a wireless contract commitment. That's $300 more than the previous generation, a Nexus 5 with a roughly 5-inch screen.

The dramatic price increases on the Nexus devices represents a strategic shift for Google. The Mountain View, California, company traditionally has hailed the Nexus line as state-of-the-art products available at more affordable prices than Apple's devices.

Because Google gives away its Android software, other devices running on the software typically sell for less than the iPhone and iPad. That has enabled more people around the world to buy smartphones and tablets.

But makers of mobile apps have poured more resources into tailoring their products for the iPhone and iPad because the owners of those devices typically have more disposable income to spend.

Google is now aiming for more of Apple's affluent market with the Nexus line while trying to ensure people with lower incomes can still buy smartphones through a recently launched program called Android. One. The first Android One phones went on sale in India last month for roughly $100.

Getting more people online benefits Google because the company has built a lucrative digital ad network though its dominant search engine and other services, including email, maps and YouTube video clips.

(With inputs from AP)

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