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Google makes no money on the sale of Nexus 7 tablet.

The long rumored Google Nexus 7 tablet went official this week. AllThingsD reports that developing the tablet was no easy task according to ASUS chairman Jonney Shih. The first big challenge was the timeframe; Google reportedly only gave ASUS four months to build the tablet.
 
Couple that short timeframe with the fact that tablet had to sell for right at $200 along with the demands of building something from massive company like Google and you can see why this was a tall order for ASUS. “Our engineers told me it is like torture,” Shih said in an interview on Wednesday, shortly after the Google-ASUS joint project was announced. “They [Google] ask a lot.”
 
“I don’t think there would have been any other partner that could move that fast.,” Andy Rubin told AllThingsD. “We went from zero to working product in four months.”
 
Rubin talked about the lackluster sales of Android tablets overall saying that the missing piece to the puzzle of why Android tablets weren't selling well initially was that they lacked an ecosystem. He says that Google lacked a full complement of TV shows, movies for purchase, magazines, and other content the people expected on the tablet. “I think that was the missing piece,” Rubin said.
 
Shih and Rubin believe that the Nexus 7 can serve as a full-fledged tablet computer while being able to compete with the Kindle Fire on price. The tablet has a laminated display, a quad-core NVIDIA Tegra 3 processor, and a seven-inch IPS unit with a 1280 x 800 resolution. Google will offer the Nexus 7 in 8 GB or 16 GB versions and both have a 1.2-megapixel front camera, accelerometers, GPS, Bluetooth, and integrated Wi-Fi.

In short, the tablet offers significantly more features than the Kindle Fire for the same price. It's also worth noting that Ruben says the tablet is sold at cost.
 
“When it gets sold through the Play store, there’s no margin,” Rubin said. “It just basically gets (sold) through.”

Source: AllThingsD



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Given away
By saarek on 6/28/2012 10:27:46 AM , Rating: 0
So it's finally gotten to the point where, in an effort to compete with Apple, competitors tablets have to literally be given away at cost.

I see where Google might benefit here, although considering Google makes a lot more money out of iOS than it does Android that's not saying much, but what does Asus get out of it?




RE: Given away
By zephyrprime on 6/28/2012 10:42:53 AM , Rating: 3
It's may be sold at cost for Google but Asus makes a profit.


RE: Given away
By zephyrprime on 6/28/2012 10:47:50 AM , Rating: 2
Also, if the 8GB model sells at cost, the 16GB model makes a profit because 8GB of additional flash does not cost $50 even if it's single level. The additional cost is more like ~$8.


RE: Given away
By mcnabney on 6/28/2012 1:43:14 PM , Rating: 2
Uhm, retail cost of NAND is around $0.50/GB now. Actual component cost is probably around $0.10/GB for just the silicon. So, about a tenth of what you thought.


RE: Given away
By quiksilvr on 6/28/2012 2:53:44 PM , Rating: 2
That is pretty unfortunate. I'd rather they sell a 16GB model for $199 (what's an 80 cents loss, really?). That way it would force other 7" tablet competitors to step up on the space.


RE: Given away
By augiem on 6/28/2012 11:01:47 PM , Rating: 3
I just want an SD slot and a removable battery. Charge me $50 more for it, I don't care. I will never buy a phone or a tablet without both of these.


RE: Given away
By mellomonk on 6/29/2012 12:29:48 AM , Rating: 2
Then you probably will not be buying many phones or tablets. Buyer's use patterns and design trends are making both increasingly uncommon. SD slot being superseded by larger memory allotments and cloud storage/connectivity. Removable battery by larger capacity & longer battery life.

Nothing wrong with wanting them, just the majority of folks don't need them anymore, hence they are disappearing.


RE: Given away
By lexluthermiester on 7/2/2012 7:11:46 AM , Rating: 3
Perhaps we are in the minority, but we are also opinion makers.

Cloud storage is proving to be fairly useless for the average consumer who cares at all about privacy. I am one of the few people out there without a data plan on my mobile phone account. That is what WIFI at home and work are for. I'm one of those people who uses his brain for something more than a seat cushion and DOESN'T use his phone while driving. But then the average sheep keeps buying iPhones by the dozens. Yes I've owned an iPhone, and while the iOS UI was a novelty, it was hardly the earth-shattering innovation Apple claims. Plus the damn thing's battery kept dying so I took it back and bought a Nokia. That Nokia still works because it has what? That's right; A replaceable battery! Imagine that... And before I recently bought an Android, I had bough a 16GB mSDHC card. And guess what? The MyTouch took it first try AND found all of my pictures, wallpapers, music and video's...

So you were saying?


RE: Given away
By lexluthermiester on 7/2/2012 6:54:34 AM , Rating: 2
Totally agree with you!


RE: Given away
By Spuke on 6/28/2012 10:56:49 AM , Rating: 3
quote:
So it's finally gotten to the point where, in an effort to compete with Apple, competitors tablets have to literally be given away at cost.
Except this tablet doesn't compete with the iPad because....drum roll...it's a SEVEN inch tablet. That's right folks! SEVEN inches.

PS - Some of you guys are like human parrots.


RE: Given away
By theapparition on 6/28/2012 11:46:04 AM , Rating: 2
That's absolutely correct.

However, there's been quite a bit of talk about Apple releasing a 7" tablet in the near future. If so, then it's nice to see Google beat them to the punch.

But I would have liked to see a Nexus 10 released as well. Can't imagine just increasing the screen size and resolution would bump the price up that much.


RE: Given away
By tayb on 6/28/2012 12:28:05 PM , Rating: 2
No, it's not. It's nonsense. It's a tablet that competes with other tablets. Do you not think that 13" notebooks compete with 17" notebooks? What a silly notion. Of course it is competing, it's a tablet.


RE: Given away
By Totally on 6/28/2012 12:47:25 PM , Rating: 2
I agree a tablet is a tablet, but 13" and 17" laptops never competed directly with one another never will, they're on opposite ends of the spectrum one being a desktop replacement and the or gear towards high portability.


RE: Given away
By Spuke on 6/28/2012 12:55:49 PM , Rating: 2
quote:
No, it's not. It's nonsense.
Nope, what you say is nonsense. See I can say that too. Both of you are incorrect. Tablets are NOT tablets. 7" and 10" market is different mainly due to price and desire for viewable area. If they were the same then Apple would already have a 7". Anecdotal but I know a LOT of people that don't see the point of a 7" tablet AND most people know exactly what size they want when shopping for a tablet. It's just like the 13" and 15.6"/17" laptop markets. People wanting a 13" are mainly interested in portability and won't get a larger screen because it limits that. That's TOTALLY different than the larger screen market.


RE: Given away
By tayb on 6/28/2012 2:56:38 PM , Rating: 1
Tablets are not tablets? Oh, okay? Here I was thinking the 7" tablet was a tablet just the same as a 10" tablet was a tablet. Perhaps I am mistaken.

I guess in your eyes a sedan does NOT compete with an SUV because, uh, it's different! No one would EVER consider an SUV that was considering a sedan.


RE: Given away
By augiem on 6/28/2012 11:06:37 PM , Rating: 2
It's up to the individual. I have a 10" tablet. I'd prefer a 7" instead because it would be easier to hold. I would do the same things on either size. In my mind for my purposes (web, netflix, casual apps, etc., which just happens to in line with the majority of the market) they are the same thing. So unless you're someone with a very specialized use of a tablet (POS, medical, engineer), a tablet is a tablet. Now if you want to talk conductive pen vs capacitive finger touch, that's a different story.


RE: Given away
By shyhh on 6/28/2012 1:33:35 PM , Rating: 4
Any lady in her right mind will tell you 7 inch is about just right. 10 inch is way too big, it hurts...


RE: Given away
By MastermindX on 6/28/2012 1:17:53 PM , Rating: 1
Just like Microsoft and Sony need to sell their console at a loss to compete with Nintendo Wii. Duh!

Ever heard of the term "Business model"?


RE: Given away
By XZerg on 6/28/2012 1:20:07 PM , Rating: 2
maybe because google still stands to benefit from having the users use google apps(ads revenue: search,maps,...) and commissions from the app store?


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