Google Nexus 7 Tablet – Google will not Generate Profit from the Sale of Nexus 7 Tablet

nexus 7 tablet

It appears that  Google will fail to recover the investment made to create Nexus 7 Tablet.

Technicians website UBM TechInsights set about dismantling one of the tablets Google recently and, taking into account the cost to manufacture these devices, along with the cost of components has been deduced that Google does not have great profits from the sale Nexus 7 .

Taking the possible price of manufacturing along with the cost of which is selling the product, it certainly achieved enough that Nexus 7 represent significant gains for Google.

It is estimated that the revenue that Google could have for each Nexus 7 8GB sold is around $ 15 approximately, whereas the 16GB model would be about $ 55 – both amounts will be reduced, considering that Google will have to pay a percentage of those profits to Asus , the company responsible for developing and manufacturing these tablets.

Many have been surprised by this risky move by Google, but everything seems to indicate that the company rather than make huge income from this new release, which aim is to have a steady income in the tablet market which, although not able to compete with iPad, hopes to position itself alongside other economic and Kindle tablets, in fact, if you want to compare these devices, please consult the following article: The Nexus 7 tablet against Fire Kindle and Nook .

What do you think is the intention of Google? Do you think the company can afford to do these moves now?

2 responses to “Google Nexus 7 Tablet – Google will not Generate Profit from the Sale of Nexus 7 Tablet

  1. I think it seems like a good strategy to me, and it’s also a well worn one in other areas of the tech industry. For example games consoles or even network subsidised phones.

    Apple have shown what kind of revenue an app market can generate and to be honest it’s about time there was some competition. Although it can be annoying having to chose between different eco systems I think we win in the long term.

  2. Interesting post. Was only just reading another post which indicated the Nexus costs roughly $151. Whether it’s $151 or $184 it’s not much, but I don’t think Google is all that worried preferring market share than making money from hardware. I wonder if Google thinks they’ll make up for what they lose on hardware through Google Play. Getting more people using Google Play makes them more money in the long run. Just a thought.

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