Teardown reveals Nexus 7 costs $152 to build

Nexus 7 costs $152 to build, according to teardown results.

@anthony256
Published Thu, Jul 12 2012 12:01 AM CDT   |   Updated Tue, Nov 3 2020 12:27 PM CST

While Google and ASUS' Nexus 7 tablet will retail in the U.S. for $199, and the companies saying they're selling it for a little over cost, a teardown by IHS iSuppli has shown that the Nexus 7's total build cost is $151.75 for the 8GB model.

Teardown reveals Nexus 7 costs 2 to build 10 | TweakTown.com
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The 16GB Nexus 7 costs $159.25 to make, and the BOM (bill of materials) is a little lower than previous estimates, pegging the Nexus 7 at around $184, seeing the companies make around $15 per tablet sold. Where the interesting part comes in, is that the 8GB is $199 retail, and the 16GB is $249 retail. Considering there's only $7.50 worth of difference in build prices, a $42.50 profit for the 16GB is not bad at all.

Teardown reveals Nexus 7 costs $152 to build 09 | TweakTown.com

But, this is no different to other products and companies doing the same thing. It is known in the industry to make money from selling memory, storage and other options at disproportionate premiums. Considering the Nexus 7 is powered by NVIDIA's Tegra 3 SoC, it's a great alternative for $199 (or $249).

NEWS SOURCE:techspot.com

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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