( CNN ) -- Google 's Nexus 4 made a splash last fall simply because it was well-built and inexpensive , and yet it did n't require a two-year contract with a wireless carrier . Now , it 's even cheaper . The Nexus 4 now costs $ 200 for the 8 GB model and $ 250 for the 16 GB model -- a $ 100 price reduction from before . Those prices are n't incredible if you 're used to buying your phones through major wireless carriers at subsidized prices , but compared to most unlocked phones , the Nexus 4 is cheap . And it 's a decent phone , running the latest version of Google 's Android operating system . Buying the phone unlocked means you can bring it to certain wireless carriers in the United States and save a lot of money on service . For example , with T-Mobile you can pay as little as $ 50 per month if you bring your own phone . Or , you can get a SIM card from Straight Talk and pay $ 45 per month for service . An unlocked phone also allows you to travel overseas and take advantage of lower service prices from local carriers . The only major drawback to the Nexus 4 is that it does n't support 4G LTE data speeds , which can sometimes rival the speeds of home Internet service . Most smartphones sold in the United States now support 4G LTE , so this is one area where the Nexus 4 seems seriously outdated . Still , at $ 200 , the slower data speeds are more palatable , especially for new smartphone adopters that are willing to sacrifice performance for a lower monthly bill . Rumor has it that a new Nexus phone , dubbed the Nexus 5 , is coming soon . It 's unknown whether this phone will be as cheap as the Nexus 4 was when it launched last year . But with lower prices on the Nexus 4 , Google seems to be girding itself for the arrival of a cheaper iPhone , supposedly called the `` iPhone 5C . '' Like the Nexus 4 , Apple 's phone could be aimed at customers who want an unlocked , off-contract handset without spending gobs of cash . I 'll be surprised if the Nexus 4 does n't stick around to do battle with Apple , even after the Nexus 5 comes into existence . & copy 2012 TIME , Inc. TIME is a registered trademark of Time Inc. Used with permission .
Google knocks $ 100 off of its Nexus 4 smartphone . It now sells for as little as $ 200 and does n't require a wireless contract . The moves comes as Apple is rumored to be planning cheaper iPhone .