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.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
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!