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Google Nexus 7 is built using $184 worth of parts

Posted: , posted by Nick T.

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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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posted on 09 Jul 2012, 02:29 2

1. thunderising (Posts: 232; Member since: 25 Nov 2011)

So can we expect smartphones at $249??

Come on come on please!

posted on 09 Jul 2012, 02:55 2

2. cepcamba (Posts: 717; Member since: 27 Feb 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

posted on 09 Jul 2012, 03:58 6

3. D.Aceveda (Posts: 405; Member since: 30 Jun 2012)

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

posted on 09 Jul 2012, 04:06 3

4. wendygarett (unregistered)

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

posted on 09 Jul 2012, 04:20 3

6. D.Aceveda (Posts: 405; Member since: 30 Jun 2012)

Uh no.

posted on 09 Jul 2012, 04:40

7. cepcamba (Posts: 717; Member since: 27 Feb 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.

posted on 10 Jul 2012, 02:38

14. thinking (Posts: 130; Member since: 19 Jan 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).

posted on 09 Jul 2012, 10:47

10. simplyj (Posts: 406; Member since: 23 Dec 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

posted on 09 Jul 2012, 13:02

13. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

radios are quite expensive indeed u_u

posted on 09 Jul 2012, 04:15 3

5. The_Godfather (Posts: 196; Member since: 26 Apr 2012)

Real Giants in Technology :- Samsung, Microsoft, Google, Asus, Nokia and Motorola

Hats off to you Google :)

posted on 09 Jul 2012, 05:20 1

8. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)

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

posted on 09 Jul 2012, 06:53

9. protozeloz (Posts: 5396; Member since: 16 Sep 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

posted on 09 Jul 2012, 12:48

11. jove39 (Posts: 1996; Member since: 18 Oct 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.

posted on 09 Jul 2012, 12:58

12. protozeloz (Posts: 5396; Member since: 16 Sep 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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