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Even Apple's $400 phone has been supported longer than the Nexus 4 was.

Apple doesn't have a 400$ phone, unless you're referring to 2 year old phone. And again, Nexus phones were not made by Google.

The iPhone SE started at $400 and is now 3.5 years old. It will probably get another 2 major iOS releases. (https://en.wikipedia.org/wiki/IPhone_SE)

The Nexus 4 launched November 2013 and got it's last major update to 5.1.1 in May 2015 according to Wikipedia. (https://en.wikipedia.org/wiki/Nexus_4)

There is this thing called legal contract, that Google could have used to enforce Nexus support.

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