Editor in Chief
Google May Actually Be Selling the Nexus 7 at a Loss Instead of Breaking Even
After the Google Nexus 7 tablet was launched, Andy Rubin shared that Google was simply breaking even on the product, but he may have been down-playing things a bit. According to the tech teardown site, TechInsights, Google may actually be selling the product at a net loss. According to their assessment, the parts for the device alone come to roughly $184 dollars. This does not take into account any marketing, packaging, support or distribution costs associated with the device. Additionally, Google is offering the $25 dollar Google Play voucher for a limited time with the device. No matter how you add these up, it seems to lead to the conclusion that Google is eating more than just the initial cost of the device.
Of course, it's important to note that the pricing for these parts was based upon TechInsights knowledge of current market value for them and may not be reflective of the final pricing that Google was able to negotiate on these parts. Still, it's hard to see how the Nexus 7 could be anything but a loss for Google, right now. If true, that's a serious commitment to the Android ecosystem, and shows that Google is banking on Android's future.
Source: NexusTablets.net via Engadget
07-10-2012 01:33 PM