Yeah, I'd be surprised if 64gig internal memory costs even $30-$40. Not that $20 or so per phone is anything to sneeze at as far as margins are concerned. Google doesn't push memory because they want your information in the cloud, where they can mine it and market it. Anyway, I've yet to see a phone in the past few years that had "the best" across the board. It doesn't happen because they need a certain margin without going over a specific price point (i.e. $300 subsidized price). They are probably correct if they came out with a phone at $350 or $400 it won't sell very well. Google, especially, wants a price point to appeal to as wide an audience as possible.