Google has already admitted that it won’t be making any money selling its new Nexus 7 tablet. However, a new teardown from TechInsights suggests that Google could actually lose money on every single Nexus 7 it sells. Fudzilla did some calculations based on the TechInsights teardown and found that every 8GB Nexus 7 tablet has $184 worth of parts, or just $15 less than the Nexus 7′s sale price. Fudzilla notes that this estimate doesn’t account for other costs such as marketing, logistics, and research and development, so it’s highly likely that Google could sell the 8GB Nexus 7 at a significant loss. However, Fudzilla also says that Google could make up for this by selling lots of 16GB Nexus 7 models, which will generate “a handsome profit” for each unit sold. Read the full story at Boy Genius Report.
Google will likely lose money on every 8GB Nexus 7 tablet sold
Author: Shelly Palmer
Shelly Palmer is Fox 5 New York's On-air Tech Expert (WNYW-TV) and the host of Fox Television's monthly show Shelly Palmer Digital Living. He also hosts United Stations Radio Network's, Shelly Palmer Digital Living Daily, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment. He is Managing Director of Advanced Media Ventures Group, LLC an industry-leading advisory and business development firm and a member of the Executive Committee of the National Academy of Television Arts & Sciences (the organization that bestows the coveted Emmy® Awards).