- Dec 15, 2009
- 274
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Just yesterday we posted a report suggesting that Google was likely be losing money on the new Nexus 7 tablet (8GB Edition). A new and more accurate tear-down/disassembly was recently made by the folks at IHI iSuppli that shows Google isn't losing quite as much as we might have thought. Apparently, after taking it apart, the folks at iSuppli determined that the tablet will cost Google $151.75 in parts. Although this is definitely cheaper than the $184 guesstimate that TechInsights gave, when you factor in all the other overhead costs associated with getting a product to market, such as distribution, packaging and marketing, plus the $25 Google Play Store Credit, it is still likely that they are losing a little bit of money or possibly breaking even in the short run. Of course, Google's gameplan is to lose this fight in order to gain market position to win the overall war. Once they can establish enough tablet market presence world-wide, it will boost the entire Android ecosystem.
As an interesting sidenote, the 16GB version of the device only costs $159.25 for Google to make, so they will actually make a decent little profit from it.
Source: AllThingsD and iSuppli
