Google Nexus 7 Parts Cost $18 More Than Kindle Fire 146
judgecorp writes "The parts for a Google Nexus 7 tablet cost only $18 more than the materials for an Amazon Kindle Fire, according to a teardown by IHS. This means while Amazon initially took a loss on each tablet sold, Google will break even on its 8Gb tablet, and make a small profit on the 16Gb model."
Re:OhmyGOD yes!!! (Score:5, Informative)
Re:Doomed competition (Score:2, Informative)
That's the point. Google's not having to subsidize their (Samsung's) tablet.
Re:Doomed competition (Score:5, Informative)
I'd take the bill of material analytics with a grain of gunpowder and salt. and anything iSuppli says anyways.
neither amazon or asus is paying list pricing for components and iSuppli doesn't know amazons or asus manufacturing expenses. furthermore they have no idea when each company bought the parts they bought.
what they work as is a list of chips inside both devices.
Re:Stick, razor (Score:1, Informative)
Andriod is really a platform for Google to sell their services (or promote ad based ones). It's not surprising they'll sell an at-cost device.
/cough/ This isn't actually a Google product -- ASUS producing and selling the device, it's just google branded. (See also, *Samsung* Galaxy Nexus).
Re:Doomed competition (Score:5, Informative)
Because you often use a tablet like this in places (buses, trains, planes, cars you are not behind the wheel of) where there is no network connection.
Even for those situations listed above where you could tether to a smartphone, extremely low data caps (you'd kill your data allowance on most carriers with a single 720p movie for example) mean that cloud storage of video is nowhere near ready for mobile devices, and even cloud storage of music is a bad idea. (Streaming music frequently is a good way to hit your data cap.)
Re:Apple & Amazon have own retail channels (Score:5, Informative)
https://play.google.com/store/devices/details?id=nexus_7_8gb [google.com]
Re:OhmyGOD yes!!! (Score:4, Informative)
You're forgetting hookers and blow.
Re:Price a little higher than originally estimated (Score:2, Informative)
The 8GB unit is $199 and the 16GB unit is $249. I guess you just misread somwhere and presumed the 16GB version would be $199.
It's nice that the UK versions are priced at £159 and £199 respectively instead of the direct replacement of the US dollar sign for a UK pound sign that some manufacturers have historically done.
Re:In what quantity? (Score:5, Informative)
I don't know which branch of electronic manufacturing you're talking about, but the one I'm familiar with has a MASSIVE per unit cost difference between buying one off components and buying them by the reel, and another big cost drop once your volume becomes high enough that the component manufacturer will deal with you direct instead of having to go through a distributor.