How much will Nexus 5 cost?

We're all waiting patiently for the Google Nexus 5 to arrive and while the search giant hasn't given us any firm confirmation that it's on the way, the tsunami of leaks, speculation and rumors makes us pretty confident of its existence.

It looks like Google is planning on launching the next installment of its smartphone series sometime this month, and while that's all well and good what we really want to know is how much it's going to cost us.

We've been going through all the chatter surrounding the Nexus 5 in our dedicated hub for the smartphone, and from there we've picked out some key pointers to help us discover the potential price.

• What you need to know: Nexus 5 release date, news and rumours

Nexus 4 price drop

The Nexus 4 launched at the incredibly low price (considering the spec sheet) of $299 (£239, AU$349) and $349 (£279, AU$399) for the 8GB and 16GB models respectively, which have since seen a healthy price cutmaking them even cheaper.

Google's decision to drop the prices may be part of the process of clearing the way for the Nexus 5 to rock up at the older, higher price point as well as getting rid of stock.

Nexus 5 pricing hints

The chance of the Nexus 5 inheriting the original pricing structure of its predecessor has been given more credence after reports appeared online suggesting the same thing.

An unnamed source leaked the information to PhoneArena in dollars and while some have made a direct conversion of the touted $299 price to around £185/AU$315 they're forgetting the taxes and other costs which are applied.

If this is the correct US price the Nexus 5 won't be as cheap as the conversions suggest in the UK and Australia - with the original pricing of the Nexus 4 a much better guide.

Other rumors have hinted that the Nexus 5 would arrive at half the cost of the iPhone 5S (that's around £275, $446, AU$473), which would make it a little dearer than expected.

Money saving design

From the various photo (and video) leaks claiming to show off the Nexus 5 it looks as though Google (and manufacturer LG) are planning on mimicking the design of the new Nexus 7 tablet.

This would mean no glass rear with fancy disco ball effect, instead replaced by a rubberized back providing a lot of grip but little in the way of premium appeal.

The transition to rubber and plastic could be an attempt by Google to keep the price of the Nexus 5 down, avoiding the more expensive metal cladding you find on the HTC One and iPhone 5S. Cutting costs in design could also allow for better tech under the hood.

New Nexus 7

It's not just the Nexus 4 which sports a low price tag with Google's tablets - the Nexus 7 (2012) and Nexus 10 - also coming in at an affordable level.

The new Nexus 7 is an enticing proposition and it has inherited the same pricing structure as its predecessor, which provides more support to the theory that the Nexus 5 will cost the same as the Nexus 4 did when it launched.

Cash in the apps

We've got to remember that Google isn't looking to make money directly from the hardware it sells, it's looking to get Android in the hands of as many consumers as possible so it can create an income from the Google Play store.

Being able to offer its Nexus devices at such competitively low prices means it can shift a lot of them and thus in the long term there's more people spending money on its platform rather than on iOS 7, Windows Phone 8 orBlackBerry 10.

That means it's not totally out the question that the Nexus 5 could arrive at a potentially lower price point than its predecessor - and if Google could launch it at the current price of the Nexus 4 (it starts at £159, $199, AU$249) alongside the rumored spec sheet then it could take the market by storm.

We don't think Google will go this low at launch as it would begin to cannibalize the already well established lower end of the Android market, but never say never.