Google has reduced the price of its Nexus 4 handset by $100 a few weeks before Apple is expected to announce its new low cost iPhone. The 8GB model is now $200, and the 16GB model is only $250. The new price tag puts the Nexus 4 in line with the iPhone 5 and many other popular Android devices. However, unlike most smartphones, the Nexus 4 doesn't require a two-year contract with a wireless carrier. It is also unlocked, which makes it cheaper and easier to use overseas, but it is only compatible with AT&T and T-Mobile's networks in the US, and it doesn't support 4G LTE speeds.
Some analysts believe Google discounted the Nexus 4 to complete with Apple's iPhone C, which could cost around $100 to $149. Apple is expected to announce the low cost, plastic iPhone alongside the iPhone 5S on September 10. Google could also be making room for the next-generation Nexus phone reportedly being manufactured by Motorola for a late 2013 launch.