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Google Nexus 7 might actually cost $151.75 to produce, teardown reveals

Posted: , by Nick T.

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Google Nexus 7 might actually cost $151.75 to produce, teardown reveals
Not long ago, a research firm called UBM Techinsights reported that the Google Nexus 7 was made out of $184 worth of components. The folks at iSuppli, however, believe that this estimate exceeds what the tablet's manufacturing cost actually is. After taking a peek under its hood, they came up with a $151.75 bill of materials for the 8GB model, and $159.25 for the 16GB version. As a side note, these can currently be pre-ordered for $199 and $249 respectively.

But why are the two estimates different? Well, it turns out that the previous report was made without actually having access to the device. In contrast, the Google Nexus 7 was taken apart by iSuppli, which allowed the guys to come up with a presumably more accurate production cost. Research and development costs, advertising, assembly, or any other related expenses are not included in latter's calculations.

In unison with what UBM Techinsights reported, iSuppli estimates that Google is selling the 8GB Nexus 7 tablet at cost and is making a small profit on the 16GB model. The device is expected to generate more income as people purchase applications, movies, and other content from the Google Play store – a marketing model reminiscent to that of the Amazon Kindle Fire.

But no matter how much the Google Nexus 7 costs to produce, it is still a great buy considering that for less than $200 you get a full-fledged Android tablet with a quad-core Tegra 3 processor inside. Or perhaps before getting one, it would be wiser to wait and see what Amazon has up its sleeve? Let us know what you think by dropping a comment!

source: iSuppli via AllThingsD

14 Comments
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posted on 11 Jul 2012, 08:53 1

1. thebest (Posts: 231; Member since: 08 Jul 2012)


they should have added a 720p hd rear camera

posted on 11 Jul 2012, 09:51 6

3. remixfa (Posts: 13942; Member since: 19 Dec 2008)


absolutely not. Do you have a tablet? Ask a tablet owner. That rear camera is almost never used.

If it had an HDMI output it would have been perfect.

posted on 11 Jul 2012, 12:39 3

8. iamcc (Posts: 1319; Member since: 07 Oct 2011)


I've owned a tablet for the last year and can back up what remix is saying which is that I don't give any flying f**ks at all whether there's a rear camera or not.

posted on 12 Jul 2012, 12:42

13. thebest (Posts: 231; Member since: 08 Jul 2012)


yes, i had a galaxy tab and now i have the new ipad........you will understand the importance of a camera on the tablet only when you get a tablet with a camera.........shooting hd videos and then watching those videos on the big screen is such a luxury

posted on 11 Jul 2012, 09:07

2. zhypher_23 (Posts: 195; Member since: 04 Jun 2012)


I wonder how much the parts of an iPad are worth?....

posted on 11 Jul 2012, 09:52 3

4. remixfa (Posts: 13942; Member since: 19 Dec 2008)


last report was like $240ish. Apple loves HUUUGE margins.

posted on 12 Jul 2012, 12:43

14. thebest (Posts: 231; Member since: 08 Jul 2012)


$375.10 according to isuppli

posted on 11 Jul 2012, 09:55 1

5. remixfa (Posts: 13942; Member since: 19 Dec 2008)


that gives me some hope that we may see more "nice" tablets at reasonable ranges. If they can produce a similar tablet with a bigger screen an HDMI with removable memory (or atleast more internal) for like $300, I might be game for it.

posted on 11 Jul 2012, 10:05 2

6. Fallout09 (Posts: 419; Member since: 17 Oct 2011)


You might be looking at the Nexus 10 this fall then.

posted on 11 Jul 2012, 15:08

10. remixfa (Posts: 13942; Member since: 19 Dec 2008)


if it has an HDMI out, then it will be very very high on my list.

posted on 11 Jul 2012, 10:10 2

7. thunderising (Posts: 225; Member since: 25 Nov 2011)


The $249 model seems to be the real bread-winner for google here.

posted on 11 Jul 2012, 13:56 1

9. axee.violator (Posts: 2; Member since: 29 Jun 2012)


I think Google is a huge enterprise so they are investing to capture the market, That's why they aren't interested in too much profit making.
Anyways see what Nokia is up to this Fall wp.me/p2sF67-dI

posted on 11 Jul 2012, 16:33

11. sonofzeus (Posts: 95; Member since: 05 Jul 2012)


3g connectivity and camera would have made the nexus 7,the best economical tablet made

posted on 11 Jul 2012, 23:57 1

12. pellegrini (Posts: 83; Member since: 14 Jun 2012)


I agree with 3G.
But remenber, Google don't want to make BEST device.
The Nexus line is to show off the OS. The Nexus S < Galaxy S, and the Nexus Galaxy < Galaxy SII (Overall features).
They let to the OEMs compete to see who can delivery the best device!
So wait and see what ASUS will offer after have built the Nexus 7. I mean, they will put the best 7" tablet out there.

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