8GB Nexus 7 Tablet costs $185 to build sold for $199

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Yes, you read it right, the lights of Google have also come down to reducing their margins to compete against the already established players in the tablet market.

If you ask me Google has rightly poised it’s tablet with a dream price tag, iFixit, the company that tears down all the gadget the day it releases have also gone ahead and done the same to the Nexus 7 and revealed some interesting results, more importantly, the amount Google would make for each of it’s 8GB Nexus 7 Tablet sold.

The margin is pretty slim for the 8GB model of the tablet as its parts were estimated to cost $184 while it sells for $199. That’s a small profit margin whichever way you look at it, and this price doesn’t even factor in manufacturing, marketing, shipping or research and development. Similar to Kindle Fire, which when launched has a tiny little profit margin for Amazon, $185 in parts and then an additional $16 to get them into customers hands.

If you ask me, the only way Google could profit with the 8GB Nexus 7 Tablet is by selling Cloud Space (Google Drive) to the users buying this varient, as I am sure, the 8GB that is in-built will not suffice.

Google, sure know about that fact and will market accordingly, while the 16GB model will make quite a decent profit but not as much as you would expect a Tech Giant like Google to.

So, Google’s statement that it hardly makes any money by selling the Nexus tablet itself turns out to be true.

Here are the Key components that iFixit pointed out its teardown:

  • NVIDIA Tegra 3 Quad-core mobile applications processor
  • Hynix H5TC2G83CFR 2Gb DDR3 SDRAM
  • Kingston KE44B026BN/8GB 8GB Memory Module
  • Realtek (RMC) ALC5642 Audio CODEC + Headphone Amplifier
  • Maxim MAX77612A Power Management IC
  • Texas Instruments TPS63020 Buck-Boost Converter
  • Fairchild FDMC6675BZ P-Channel Power MOSFET
  • Texas Instruments SN75LVDS83B LVDS Display SERDES
  • ELAN Microelectronics eKTF3624BWS Controller for Resistive Touchscreen
  • ELAN Microelectronics eKTH1036BWS Controller for the Resistive Touchscreen
  • Broadcom BCM4751 Integrated Monolithic GPS Receiver
  • InvenSense MPU-6050 Six-Axis (Gyro + Accelerometer) MEMS Device
  • AzureWave AW-NH665 802.11n WiFi / Bluetooth / FM Radio module
  • NXP Semiconductor PN65 Secure NFC Module

The DNetWorks Team