8GB Nexus 7 Costs $151.75 to Build

8GB Nexus 7 Costs $151.75 to Build

Source: Hollywood Reporter

Research house IHS iSuppli recent stripped Google’s new Nexus 7 and found that the lower-end 8GB model which retails for $199, costs about $151.75 to build. The $299 16GB model, on the other hand, by virtue of its additional capacity, costs $159.25.

With that, they say that Google will probably break even with every 8GB model sold, but will reap a tidy profit on sales of the 16GB model.

“Like Apple, Google realizes it can boost its profit margin by offering more memory at a stair-step price point. It’s getting $50 more at retail for only $7.50 more in hardware cost, which sends $42.50 per unit straight to the bottom line.”

They also noted that the Nexus 7 and the Kindle Fire shares many similarities, with the main differences being the processor and display. More crucially, the Kindle Fire costs $18 less to build.

For a more detail analysis of the costs and components used, hit up the sources below.

Source: AllThingsD, Macgasm


All News Categories

News for Past 12 Months

Subscribe to HWZ Here!

Subscribe now to receive latest tech news, articles and promotions straight to your inbox!
By signing up, you indicate that you have read and agreed to the and .

Obsessed with technology?
Subscribe to the latest tech news as well as exciting promotions from us and our partners!
By subscribing, you indicate that you have read & understood the SPH's Privacy Policy and PDPA Statement.