Making the Nexus 7 costs $ 184 but Google will sell it for $199

An investigation of the components of the tablet manufactured by ASUS Google Nexus 7, highlights a cost of $ 184 to manufacture.

Nexus 7

Given that the Nexus 7 sold for $ 199, the margin for Google would be minimal. If we add the costs of research and development, logistics, marketing and other costs, we can conclude that, on paper, Google loses money on each unit sold Nexus 7.

The strategy would compensate for the revenue costs through the sale of content in Google Play, the distribution service applications, games and multimedia that Google is clearly focused on internal Nexus 7 tablet.

Another objective of this device would advance the development of Android and extend the platform to cut market share to Apple iPads. Also increase advertising revenue and strengthen first in searches.