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ASUS co-branded the Nexus 7 to increase brand value

The Jelly Bean-sporting Nexus 7 was co-branded by ASUS so they could increase their brand value

By Anthony Garreffa from Jul 2, 2012 @ 5:48 CDT

According to analyst Thompson Wu of Credit Suisse, ASUS are using the close partnership with Google and their recently-announced Nexus 7 tablet to enhance their brand rather than just the desire to make money.

asus_co_branded_the_nexus_7_to_increase_brand_value_10

Production cost is said to be roughly $200, and the Nexus 7 sell for $199.99, meaning ASUS are breaking even on every tablet sold. Usual OEM business methodology would be vastly different, but ASUS are looking to build their brand in a system where OEM's "have limited opportunities to differentiate" from the brands ASUS are making hardware for.

Wu says:

We believe Asustek realizes that in a market where OEMs have limited opportunity to differentiate without content and operating systems, it's demonstrating its edge via research and development and innovation, while building upon its brand value.

NEWS SOURCES:Vr-zone.com


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