3 ms·

Nexus 7 devices are being sold at a loss, so I suppose in one sense yes, the price there is too good to be true.

by gms 14y ago

jonknee 14y ago
Source?
trimbo 14y ago
> Nexus 7 devices are being sold at a loss Back in June... and only for the $199 model...
bryanlarsen 14y ago
What I heard is that Google isn't making money on them, but ASUS is.
cmatthias 14y ago
I'm not quite sure whether there was ever an original source for this claim other than a bunch of tech blogs parroting each other, but iSuppli shows that this was false, at least as of July 11th: http://www.isuppli.com/Teardowns/News/pages/Low-End-Google-Nexus-7-Carries-$157-BOM-Teardown-Reveals.aspx http://www.isuppli.com/Teardowns/News/pages/Low-End-Google-N... Sure, if you add in the $25 Google play credit, and leave room for some margin for Asus (since Google is just a reseller), you might get close to breaking even, but as far as I can find, the Nexus 7 was never sold at a loss.
- gms 14y ago
  I stand corrected; thanks.
illumin8 14y ago
If the device is free (or close to cost) then buyer beware... The device is not the product; you are!
RShiki 14y ago
It's not sold at a loss, but with a very low profit margin. At a loss would mean that they're actually bearing the cost of manufacturing the device even after they got your money, which is not true. They also get a much higher profit margin on the 16gb (now the 32gb for the Nexus 7) than on the 8gb which is what a lot of people will buy. There isn't a $50 cost in manufacturing a device with 16gb more of storage but there is a $50 markup for the customers who want more local storage. Storage is much, much cheaper than what you're paying for when you buy a tablet or phone with bigger SSDs. The profit margins on the 64gb iPhones are INSANE compared to the profit margins on the 16gb. The base, $300 Nexus 4 is going to have a paltry 8gb. Most of the heavy users are going to spend the $50 more for the 16gb, while the $300 will still be there to please those who have to be more careful with their money.
- Rastafarian 14y ago
  When you factor in the huge R&D costs, the cheapest models are definitely sold at a lost.

Nexus 7 devices are being sold at a loss, so I suppose in one sense yes, the price there is too good to be true.

by gms 14y ago

Nexus 7 devices are being sold at a loss, so I suppose in one sense yes, the price there is too good to be true.

jonknee 14y ago

Source?

trimbo 14y ago

> Nexus 7 devices are being sold at a loss Back in June... and only for the $199 model...

bryanlarsen 14y ago

What I heard is that Google isn't making money on them, but ASUS is.

cmatthias 14y ago

I'm not quite sure whether there was ever an original source for this claim other than a bunch of tech blogs parroting each other, but iSuppli shows that this was false, at least as of July 11th: http://www.isuppli.com/Teardowns/News/pages/Low-End-Google-Nexus-7-Carries-$157-BOM-Teardown-Reveals.aspx http://www.isuppli.com/Teardowns/News/pages/Low-End-Google-N... Sure, if you add in the $25 Google play credit, and leave room for some margin for Asus (since Google is just a reseller), you might get close to breaking even, but as far as I can find, the Nexus 7 was never sold at a loss.

gms 14y ago
I stand corrected; thanks.

illumin8 14y ago

If the device is free (or close to cost) then buyer beware... The device is not the product; you are!

RShiki 14y ago

It's not sold at a loss, but with a very low profit margin. At a loss would mean that they're actually bearing the cost of manufacturing the device even after they got your money, which is not true. They also get a much higher profit margin on the 16gb (now the 32gb for the Nexus 7) than on the 8gb which is what a lot of people will buy. There isn't a $50 cost in manufacturing a device with 16gb more of storage but there is a $50 markup for the customers who want more local storage. Storage is much, much cheaper than what you're paying for when you buy a tablet or phone with bigger SSDs. The profit margins on the 64gb iPhones are INSANE compared to the profit margins on the 16gb. The base, $300 Nexus 4 is going to have a paltry 8gb. Most of the heavy users are going to spend the $50 more for the 16gb, while the $300 will still be there to please those who have to be more careful with their money.

Rastafarian 14y ago
When you factor in the huge R&D costs, the cheapest models are definitely sold at a lost.