Google Breaking Even on Nexus 7 Tablet in the Google Play Store; Sold for $0 Profit

[dgstorm]

According to statements from Android head Andy Rubin, the Google Nexus 7 tablet will not be making any money on the sale of the hardware. Apparently, the sell through price on the Google Play Store is a break even amount with $0 in actual profit. Rubin said, “When it gets sold through the Play store, there’s no margin, it just basically gets [sold] through.” In fact, in the interview he made it clear that Google is absorbing all of the costs of the device, and that it could end up being a net loss per unit for the hardware. Google's whole goal is to build an ecosystem of content to eventually rival Amazon. They intend to make money by promoting content sales through the Google Play marketplace. They have even added magazines, books and TV shows to their lineup of movies, music and more.

Source: NexusTablets.net via BGR

 

[J515OP]

More proof that this is intended to be a Gook Fire (Google/Nook/Fire). Fortunately it has decent specs and can also be used as a regular tablet for those so inclined. Really though, they are targeting people who are going to use it as an e-reader and will buy content.

 

[yann2]

People are going to be buying the Nexus 7 in droves.

One of the developers working in the Le Pan 1 tablets just ordered a Nexus 7, about CAD$257 including taxes and shipping to Canada.

The Nexus 7 sale page on the Play Store also says they are giving you a $25 credit voucher - which could be used for apps, music, videos, etc. Anything on the Play store.

Glad to see Google doing this, nice tablet.