Google’s Nexus 7 Costs $160 to Build, Says iSuppli - allisonlaving1985

Google's Link 7 might wrick a small lucre after all, reported to a third-political party estimate by IHS iSuppli.

For the 8 GB Nexus 7, the visor of materials totals $151.75, surgery $159.25 with manufacturing costs included, iSuppli said. The bill of materials for the 16 G model is $159.25, surgery $166.75 with manufacturing.

CLICK TO READ: Nexus 7 Teardown Overview

Factor in additional costs such as distribution, marketing and tech support, and iSuppli estimates that Google "will at to the lowest degree break even" on the 8 GB Nexus 7, priced at $199, and wish turn a "modest lucre" happening the $249 version with 16 GB of storage.

Estimates aside, Google Fourth-year V.P. of Mobile Andy Rubin has already said that the Nexus 7 won't rake in in the profits. "When it gets sold through the Play store, there's no margin," Rubin told All Things Digital last calendar month. "IT sportsmanlike basically gets (sold) through."

Only there's a bit more room for earnings in the 16 GB model, which is priced $50 higher the Base model even though the storage only costs $8 more. That would explicate why retailers such American Samoa Gamestop and Staples are only selling the 16 GB version. At the moment, the Google Play store is the but place to get the 8 GB version.

CLICK TO COMPARE: Nexus 7 Lozenge vs. Kindle Fire vs. the Rest

The note of materials estimate from iSuppli is another good example how cutthroat the double-bass-closing of the pill commercialise can be. When the Kindle Fire launched last year, iSuppli estimated a total cost of $209.63, which meant Amazon was losing about $10 on every lozenge sold-out.

It's worth keeping all this in judgement, in light of rumors that Apple will enter the small pad of paper commercialize later this year. Apple's supply chain management is reputable plenty that the company may be able to beat Google on the cost of materials, but I'm doubting of speculation that Apple will free a 7.8-inch tablet for $200. If Apple wants to profit from the hardware, a $250 to $300 tablet seems more likely.

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