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Google to earn $15 for each Nexus 7 tablet sold

Google are estimated to be making $15 per Nexus 7 sold

| Mobile Devices, Tablets & Phones News | Posted: Jul 6, 2012 3:33 am

Google's $199 Nexus 7 tablet arrives in the next week or so, and we've previously reported that Google and ASUS were selling them for around cost price, $199. But, research firm UBM TechInsights believes that it costs Google $184 per Nexus 7 tablet to be manufactured, leaving $15 in profits.

 

TweakTown image news/2/4/24812_03_google_to_earn_15_for_each_nexus_7_tablet_sold.png

 

Compared to Amazon where they make around $46 per Kindle Fire sold, and Apple make around $170 for each and every iPad sold. So the question asked is why would Google even bother with making a tablet if there's hardly any profit margin?

 

Well, first off, it gets their tablet into more hands than if it were more expensive, and Google getting their Nexus 7 into as many hands as possible is good for generating revenue elsewhere. From their Google Play store, the use of Gmail, Maps, YouTube and more.

NEWS SOURCE
Techspot.com

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