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 the full story at Boy Genius Report.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with AI strategy, implementation and governance, as well as technology, media and marketing. Named one of LinkedIn’s Top Voices in Technology, he is a bestselling author, covers tech and business for Fox 5’s Good Day New York, is a regular commentator on CNN, and writes the popular daily business blog Think About This. Follow @shellypalmer or visit shellypalmer.com.