Long before Nexus 7 was featured on Google I / O, we heard hundreds of rumors about its size, technical specifications, manufacturing, etc. But even after its presentation, we continue to receive information that is not confirmed by Google. In this sense, the director of Android, Andy Rubin, had already indicated that Google sold Nexus 7 at cost price but it seems that they could be even losing money. The $199 that the 8GB version is worth in the American market would not cover the cost of producing the tablet and distributing it.
An UBM Tech Insights reveals that the material's list amounts to a price of $184. The device manufactured by Asus incorporates high-quality components and as iFixit already demonstrated when opening it completely, we saw that they did not skimp on expenses even for thermal insulation of the processor NVIDIA Tegra 3. But from what UBM Tech Insight tells us, it is not only its Tegra 3 processor that makes the product more expensive. The components related to the efficient use of energy in the battery has a lot to do with the high cost of production.
In the US, Google is shipping Nexus 7 only for $ 14 shipping costs. And on top of that, it is giving away $ 25 for content on Google Play.
This calculation is done for the 8GB version, however the 16GB version costs $ 50 more. Here is a cat in lockdown and more profit margin. Cobra $ 50 for 8GB of NAND Flash memory, when in fact it costs 8 dollars, it is a bit abusive as the digital magazine points out Fudzilla. In addition, the costs of the bill of materials will gradually decrease over time until the profit margin is higher.
That Google agrees to lose money with Nexus 7 clearly fits with its strategy of competing in the sale of content with Amazon. Amazon is expected to respond to this battle with a low price in Kindle Fire 2 and it is rumored that Apple could even enter with the still not officially recognized iPad mini.
For more information about Nexus 7 materials you can visit the website of UBM Tech Insights.