Google Nexus 7 is built using $184 worth of parts

Google Nexus 7 is built using $184 worth of parts
Soon after the Nexus 7 tablet was revealed, Google's very own Andy Rubin stated that the device is being sold at cost. And that should not come as much of a surprise since a mere $199 is what a customer can get one for from the Google Play store. For a Tegra 3 tablet made by a company you've actually heard of, that is a pretty sweet deal, not to mention that you get an extra $25 to spend on content from Google Play.

But how much does a Google Nexus 7 exactly cost, and is the tech giant really making no money at all? Well, it depends. Turns out that an 8-gig model is made out of $184 worth of components. That does not include research and development costs, advertising, assembly, or any other related expenses. So yeah, Google is giving you an awesome tablet with no profit margin added, hoping it will make up for it with content that you would potentially buy.

However, let us not forget that the Google Nexus 7 tablet comes in a 16-gig variety as well. Having 16 gigabytes of storage requires an extra NAND chip worth $8, yet the model's price is $50 higher. That said, Google and Asus will be making money from this model right from the start. Besides, that cheaper variant has less than six gigs of user-available storage space, which will surely make many customers pick the 16GB Google Nexus 7 tablet instead.

As a side note, the $199 Amazon Kindle Fire, which the Google Nexus 7 will be competing with head-on, was torn down soon after release revealing $201.70 worth of parts.  

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Nexus 7
  • Display 7.0" 1280 x 800 pixels
  • Camera / 1.2 MP front
  • Processor NVIDIA Tegra 3 T30L, Quad-core, 1300 MHz
  • Storage 8 GB
  • Battery 4325 mAh

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14 Comments

1. thunderising

Posts: 232; Member since: Nov 25, 2011

So can we expect smartphones at $249?? Come on come on please!

2. cepcamba

Posts: 717; Member since: Feb 27, 2012

By Q4 you'll have your wish, I'll even throw in superb specs (quad-core tegra3, 720p screen, 5mp camera with 1080p video capture, 2000+ mah battery, sub-9mm thickness, jelly bean). All of that under $200.-Smartphone Santa

3. D.Aceveda

Posts: 432; Member since: Jun 30, 2012

A successful company NOT being greedy? Way to go Google!

4. wendygarett unregistered

sadly, they will be cheated by google's scam online advertisement

6. D.Aceveda

Posts: 432; Member since: Jun 30, 2012

Uh no.

7. cepcamba

Posts: 717; Member since: Feb 27, 2012

IMO, the ads doesn't hurt. We're getting a lot of free stuff already anyway. It's just like a symbiotic relationship, between Google, Advertisers and us.

14. thinking

Posts: 130; Member since: Jan 19, 2012

Why is an advert such a bad thing? Just ignore them. They're not forcing you to buy anything. This site also has adverts. There are costs to everything. Google has to run itself. The revenue needs to come from somewhere. It can be YOU (paying a way high cost) or it can be the advertisers (so YOU don't have to pay the high cost).

10. simplyj

Posts: 406; Member since: Dec 23, 2009

That would be awesome, the only thing that's missing are the radios for GSM/LTE etc etc.. And then packing it down to a smaller form factor.. But surely that can't be the only thing that pushes phones to $600+.. i'm sure the carriers have a big say in that so they can get more customers

13. protozeloz

Posts: 5396; Member since: Sep 16, 2010

radios are quite expensive indeed u_u

5. The_Godfather

Posts: 196; Member since: Apr 26, 2012

Real Giants in Technology :- Samsung, Microsoft, Google, Asus, Nokia and Motorola Hats off to you Google :)

8. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

This is lose for Google, because there's R&D to consider

9. protozeloz

Posts: 5396; Member since: Sep 16, 2010

I personally aim for the 16GB version for me, My brother also aims for that one and will get an 8GB version for my younger relative because he got great grades this year and wanted a good android tablet... I can see the 16GB could be the top seller and the one that has the best profit

11. jove39

Posts: 2147; Member since: Oct 18, 2011

Google is just expanding consumer base...to serve more ads online...and make people consume content from play store and return the favor to Google...not bad at all.

12. protozeloz

Posts: 5396; Member since: Sep 16, 2010

of course, the more people can get their hands on a tablet more people are likely to buy music, songs books and apps from Google play, plus this tablet solves the issue with the people waning to have the latest version of android ASAP. I would expect a bump in media consumption from the play store and more awareness since its better priced that your average high end phone, or netbook(please someone kill the netbooks already)

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