Google’s Nexus line has always been a great place for the cost-conscious shopper to find the latest and greatest hardware at super affordable prices. It’s all thanks to Google subsidizing the hardware themselves in the hopes that it increases the number of Android devices on the market, and by extension, increase their ad revenue. Well, it works, and it looks like Google will be continuing that trend with the Nexus 5.

An unnamed source speaking to PhoneArena told the publication that the Nexus 5 will only cost $299 off contract when it launches presumably later this month. This version of the device will include 16GB of internal storage and 2300mAh battery. It’s also being reported that a 32GB version with a 3000mAh battery will be offered for $399.

The above prices are incredible for a phone with the Nexus 5 specs. A leaked service manual tells us that LG and Google have built what amounts to the manufacturer’s flagship G2 smartphone. That means you’ll get a 5-inch full HD display, a Snapdragon 800 CPU and 2GB of RAM. The only difference between the two is that the Nexus 5’s camera will be downgraded to an 8MP rear camera and a 1.3MP front camera.

Even with the inferior camera, the Nexus 5, much like the Nexus 4 before it, will represent a hell of a steal if it really does only cost $299 at launch. With mobile carrier subsidies, it might cost even less. At those kind of prices, those who want a powerful smartphone with the best Android has to offer will flock to Google’s Nexus line yet again. We can only hope that Google and LG have anticipated the demand this time around.

[Image: LG Service Manual – now removed]