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Google will likely lose money on every 8GB Nexus 7 tablet sold

Updated Dec 19th, 2018 8:29PM EST
BGR

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Google has already admitted that it won’t be making any money selling its new Nexus 7 tablet. However, a new teardown from TechInsights suggests that Google could actually lose money on every single Nexus 7 it sells. Fudzilla did some calculations based on the TechInsights teardown and found that every 8GB Nexus 7 tablet has $184 worth of parts, or just $15 less than the Nexus 7’s sale price. Fudzilla notes that this estimate doesn’t account for other costs such as marketing, logistics, and research and development, so it’s highly likely that Google could sell the 8GB Nexus 7 at a significant loss. However, Fudzilla also says that Google could make up for this by selling lots of 16GB Nexus 7 models, which will generate “a handsome profit” for each unit sold.

Read [TechInsights] Read [Fudzilla]

Brad Reed
Brad Reed Staff Writer

Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.