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.