Asus RMA Process Takes Up to 2 Weeks

sigaiser

Member
May 23, 2011
8
0
0
Visit site
I would like to say first that I absolutely LOVE my Nexus 7 tablet. Having owned a couple of different Android tablets made by those other people (Samsung...even an iPad Mini), I can honestly say the N7 really is the best. With that being said, I would like to share my experience with them today, and I hope it helps others in being more informed about their decision to purchase in the future. Its kind of a long read, but you will be shocked at the end, so please see it through.

A week or so ago my tablet developed an issue where after waking it from standby I would have to toggle Airplane Mode on and off in order to access the internet. I was off work today so I called Google warranty about the issue. The gentleman I spoke with was very kind and, I believe, as helpful in the situation as he could be. After explaining the issue and running through some standard trouble shooting, the first technician I spoke with from Google concluded it was most likely a hardware issue and that someone from a different department (mind you, I was speaking to the warranty department already) would contact me via email in 24-48 hours.

After I hung up from him, I thought about it and something wasn't quite right. The warranty department should be able to generate a replacement or at the minimum an RMA right then, right? So I called back and asked to speak with a manager. I was transferred to a floor supervisor, explained everything that had transpired up until then, to which he promised to get to the bottom of the issue right then. He asked for my email address, which I provided, when he stated he could not find an order for a Nexus tablet. I proceeded to explain to him I purchased it from GameStop, I had the receipt with the box and date of purchase, when he abruptly cut me off to tell me he could not do anything about my warranty issue because it was bought from a third party. He explained I would have to go through the retailer or through Asus. Now, here is where my trouble with this begins. Is this not manufactured for, branded, and advertised as a GOOGLE Nexus 7 tablet...or is it brand, advertised, and sold as an Asus Nexus 7 tablet. Yes, I understand who actually manufactured it. But that is transparent. There are A LOT of products made by other manufacturers that are sold under a different brand name. In fact, there are actually quite few true "manufactures" in the world but they make and sell products daily under a different name. However, this floor supervisor was unwilling to provide me with any assistance at all. He did offer to connect me to Asus customer support.

Another hold later, and 20 something minutes into the call, I was connected to another very nice customer service rep from Asus. I again (third time) explained the issue and the steps already performed to remedy the situation. After speaking with him for a while, he agreed to issue an RMA so that one of there technicians could diagnose the problem and do a repair or replace. I asked at his point how long this process takes...TWO WEEKS. Mind you, I have only owned the tablet a total of exactly 7 weeks and 2 days. I told him that this was completely unacceptable. He then offered to upgrade my case to priority service. Again I asked for a time frame and was told this time...1-1/2 WEEKS, or 3 days faster. At this point I am furious. I asked if I could have a replacement sent out...NO. I asked if I could have one sent out with a hold on my credit card until my defective unit was received...NO. I asked if I could have a refund arranged...NO. I asked if he would be kind enough to contact GameStop to request an exchange be made...NO. MY ONLY OPTION ON A 7 WEEK OLD TABLET...A GOOGLE TABLET MIND YOU...WAS TO BE WITHOUT FOR 2 WEEKS! You have go to be kidding me! I sincerely thought Google was better than this.

I used the following analogy...you buy a brand new car. It has a warranty issue that needs fixed so you take it to the dealership at which point they say, "sorry but we cant fix it for 2 weeks" and leave you with no car. I honestly can not believe the customer service between these two companies is this poor. As well, I have had cell phones replaced by AT&T under warranty that CERTAINLY were not made by AT&T, yet Google does not share the same mindset although the tablet was clearly a Google product.

So, I write this as a warning for any of you that have purchased your tablet from GameStop, Best Buy, Staples, ect. what challenges you face should you ever need warranty service. And to those who did purchase off the Play Store exactly how Google is treating their customers. I love Google (a lot less now) but I will NEVER buy another Nexus/Google branded product again...not so much as rent a movie or buy a song from the play store. And I will take to any forum I can access to share my experience in an attempt to convince Google/Asus to improve their customer service. They have lost a customer and I implore you to share my experience with as many people as you can that may be considering a Google product or service in the future.
 

Aquila

Retired Moderator
Feb 24, 2012
15,904
0
0
Visit site
2 weeks turnaround seems like a very reasonable turnaround given that they don't know what the issue is. I might have recommended trying a factory reset first, some other trouble shooting ideas or discussing an exchange with Game Stop, but it seems like Google did give you the correct information that you have to deal with the manufacturer on non-Play Store purchases. I am confused about this statement:
I sincerely thought Google was better than this.
because it seems to be in response to a statement made by an Asus representative. Are you upset with Asus for the 2 week turnaround quote or with Google for some as to yet unmentioned reason?
I would like to say first that I absolutely LOVE my Nexus 7 tablet.
This statement makes it sound like you do enjoy Google's software and ecosystem, yet you're going to burn those bridges because of dissatisfaction with an OEM. I guess I'm missing the connection unless your expectation was that Google override Asus' internal policies somehow.
 

maxnexus

Member
Oct 2, 2013
12
0
0
Visit site
The term 'pull on your big boy shorts and suck it up' springs to mind. I agree, two weeks in such circumstances is not unusual for turn around though I appreciate, can be inconvenient. They are addressing your issues albeit in a longer time frame than you hoped for but such is life..... and the last time I checked my tablet, I was unable to drive around on it....:)
 

jerrykur

Well-known member
Sep 30, 2010
1,217
16
0
Visit site
As a BMW owner I am used to week long delays when the service department is backed up, or they discover they need a part that is out of stock. Welcome to the world of minimal staffing and just in time manufacturing.

Posted via Android Central App
 

asanatheist

Well-known member
Jun 22, 2013
304
0
0
Visit site
As a BMW owner I am used to week long delays when the service department is backed up, or they discover they need a part that is out of stock. Welcome to the world of minimal staffing and just in time manufacturing.

Posted via Android Central App

This isn't the case of minimal staffing and just in time manufacturing. It's about picky consumers, cry babies, and lawsuit happy country.
The 2 weeks given usually results in a 1 week time period. Not 2 weeks. However they give you 2 weeks JUST in case something does go wrong.

OP You paid what the tablet cost to mfg, 2 weeks turn around is the norm for even more expensive equipment let alone a tablet sold at cost.
For example: HP Envy 17, cost me $1400. They offered 1-2 week turn around, I actually got it back in 5 days including to and from shipping.
My Dell Precision/latitudes? Next day, because the warranty they provide adds to the cost of the laptop (considerably I may add).
 

sparksd

Well-known member
Aug 20, 2010
1,098
9
0
Visit site
I recently sent my Asus Infinity TF700T to the Texas facility on an RMA and it was 2 weeks door-to-door (I used 2-day shipping to them).
 

howardv

Well-known member
Sep 1, 2013
72
0
0
Visit site
It's really a bummer when things break down so quick. But it happens. This is why Best Buy offers to sell their extended warranty plans, where items are replaced immediately, but you have to pay extra for that protection.

The scenario you brought about happens everyday with all manufacturers. I purchased a new Sharp Aquos TV a few years ago and it broke down in 3 months. I took it to an authorized repair center and they had it for 4 months because parts were on back-order. I had a big fight with Sharp about reasonable turn around time. They finally replaced it.

And everyone knows Google doesn't make the Nexus. Asus is clearly printed on the side of the box when you purchase the unit. And the warranty card inside explains Asus is responsible for warranty claims.

Have you tried contacting Gamestop? They may make exceptions to their 30 day return policy and make an exchange for you. And to me, 2 weeks is not an unreasonable amount of time for repairs. It's actually faster than most other manufacturers.
 

sigaiser

Member
May 23, 2011
8
0
0
Visit site
My issues with the entire scenario are not the turn around time. It's the fact that its the only option available. I would gladly allow them to place a credit card hold while the exchange is being made. That way the consumer is not without a product for which he purchased. To the person who referenced the BMW scenario...that's ****ty because I drive a Nissan that came from a Nissan/VW/Mercedes/BMW dealership that insists on providing loaner vehicles. Even my wife's Chevrolet dealership does.

My second point is the two entirely different policies. I do, 100% understand who manufactures the tablet. But no one can deny that its branded and sold as a Google tablet. In fact the Google rep I spoke with went so far as to tell me had I bought it from the play store he would send a replacement. Asus has no such policy. This was built for Google and sold by Google therefore I feel Google should insure consistency in how its retailers handle situations sch as this. And too that point, with the recent botching Google has done with each of the last several product roll outs, does anyone really blame me for buying from a retailer? Not to mention saving the inflated shipping costs.

And to the smartass reply about demanding/never happy/sue-happy consumers...whatever. Get off you high horse. Since you are so obviously blessed with God like patience and understanding, why don't you trade your tablet for my defective one and you can deal with the hassle. Otherwise, if you don't have anything good to add, keep it to yourself.

Sent from my Nexus 7 using Tapatalk 2
 

sigaiser

Member
May 23, 2011
8
0
0
Visit site
My primary issue is that, undeniably, the tablet was designed/made/marketed/sold by Google. Google has taken complete ownership of it. Asus, for all intents and purposes, is transparent in this case. You can not call Asus and order a Nexus 7 tablet...and up until this launch could not buy a nexus tablet throw any of the Asus retail partners.

With that being said, and given that in all actuality this a Google product, they are passing off backing it up. Had Google not said its a retail unit therefore we wash our hands of it, or had Google not given preference to Play Store purchases this wouldn't be an issue. But, given Google's track record of attempting retail launches, is it any real surprise a consumer may chose an established retail outlet instead. And because of it, be punished (for lack of a better term) for it.

Now, I'm a realist. I know there are more important events happening every day in my life. I just wanted to share my displeasure and prepare any of the what must be many people who bought their tablet elsewhere what they have to look forward to for warranty service. I don't need some one to tell me to put on my big boy pants or to suck it up. They wouldn't say to me in person so why do it behind a computer. And I feel its the moderators responsibility to tamp that type of behavior before it gets out of control.

Anyway, I hope that clears up the purpose behind my rant/post

Sent from my Nexus 7 using Tapatalk 2
 

asanatheist

Well-known member
Jun 22, 2013
304
0
0
Visit site
My primary issue is that, undeniably, the tablet was designed/made/marketed/sold by Google. Google has taken complete ownership of it. Asus, for all intents and purposes, is transparent in this case. You can not call Asus and order a Nexus 7 tablet...and up until this launch could not buy a nexus tablet throw any of the Asus retail partners.

With that being said, and given that in all actuality this a Google product, they are passing off backing it up. Had Google not said its a retail unit therefore we wash our hands of it, or had Google not given preference to Play Store purchases this wouldn't be an issue. But, given Google's track record of attempting retail launches, is it any real surprise a consumer may chose an established retail outlet instead. And because of it, be punished (for lack of a better term) for it.

Now, I'm a realist. I know there are more important events happening every day in my life. I just wanted to share my displeasure and prepare any of the what must be many people who bought their tablet elsewhere what they have to look forward to for warranty service. I don't need some one to tell me to put on my big boy pants or to suck it up. They wouldn't say to me in person so why do it behind a computer. And I feel its the moderators responsibility to tamp that type of behavior before it gets out of control.

Anyway, I hope that clears up the purpose behind my rant/post

Sent from my Nexus 7 using Tapatalk 2

I'd recommend taking a read at USA warranty, merchant, and OEM laws (usually found in consumer protection categories).

Basically it goes like this:
In some situations warranty falls in this line (consult your warranty statements, they usually tell you who to fall on first and foremost):
OEM-> Rebrander-> Distributor/Vendor-> Vendor
In the event a contract or agreement is made between OEM and rebrander then warranty may look something like this. This is probably some if not most of the situations:
Rebrander-> OEM -> Distributor/vendor -> Vendor (Think HP/Dell/Apple/a few other electronics companies)

In the event of many smaller rebranders (think Insignia, Dynex and the like) most are set up precisely if they fail they pass liability to no one. Some are in-house brands so one could fall back on the vendor and chances are they will take care of you but if they don't you have slim chances in court.
Rebrander-> Possibly maybe the inhouse vend-> orCourt
 

howardv

Well-known member
Sep 1, 2013
72
0
0
Visit site
I don't need some one to tell me to put on my big boy pants or to suck it up. They wouldn't say to me in person so why do it behind a computer. And I feel its the moderators responsibility to tamp that type of behavior before it gets out of control.

It's awfully arrogant for a new member with one post to dictate how the mods should do their job. I also feel you are being unreasonable. The side of the box says "Asus". It's common knowledge "Android" is a free operating system being used by various manufacturers. Nexus is a combination product of Google and Asus, but it's still very clear that Asus is the manufacturer of the product. Did you bother reading the supplied warranty information when you bought the unit? You could have returned the unit immediately to Gamestop if you didn't like the fact that Asus is responsible for warranty repairs.

It's also common knowledge that various dealers have their own return rules. Some may offer a 14 day return while others offer up to 30 days. Some may even offer longer periods on good faith. It's up to the retailer. Google is saying that if you had bought from them, they would have offered you extra protection (e.g. replacement units). There is nothing wrong with that. I think your rant has provided more customers to buy directly from Google rather than hurting their business.

I have a Honda and I don't get a "loaner" when I take it in for repairs. Some other dealer may, but mine doesn't. My girlfriend has an Audi and she only gets a loaner if the repair job takes more than a day and if there is a loaner available. Unless the manufacturer has made specific promises as to a loaner, it's completely up to the dealer.

I don't think 2 weeks is an unreasonable amount of time for repairs. And I don't think they (Google or Asus) should provide a loaner. My $8,000 McIntosh Blu-Ray player broke down while under warranty. It was in the repair shop for 2 months. Even McIntosh, the manufacturer of very high-end audio/video equipment, doesn't offer loaners. Verizon or ATT offering a loaner or instant replacement on a phone is a whole different story and it's completely up to them.

On a side note, you can go to Gamestop, buy another Nexus 7, and then return it after you get yours back in 2 weeks. Or heck, order one through Google.
 

sigaiser

Member
May 23, 2011
8
0
0
Visit site
In reply to howardv....

First get it straight. I did not ask for a loaner. I simply asked for a resolution to my issue that would not result in my having to go without for two weeks. Not an unreasonable request by any stretch.

Second, you have the audacity to call me arrogant for defending myself against condescending remarks yet say nothing to the perpetrators. What does that say about you. I have not once said anything insulting to or directed toward anyone therefore I would ask for the same or, as I mentioned, ask a moderator to step in and counsel the offending parties.

If you don't agree with me, that's fine. You are most certainly entitled to your opinion. As far as the car repair analogy...leave it at that...an analogy.

Lastly, I, and most likely everyone else knows who made this product. It is however Google's reputation on the line. They have prominently placed their name all over it. The Nexus line is in fact the face of Google as a platform for which developers are supposed to base their products. Today people have choices and no company, be it Google or Apple can afford to alienate customers because there is always someone welcoming them with open arms. Apple has set a world class standard with their customer service. And now its up to everyone else to step up to that challenge if they want to be successful.

If by chance I have increased Googles market share...good. I actually want them to succeed. However, as is my right, I will not choose another Nexus product after this and previous debacles involving their feeble attempt to be a hardware vendor. Over the course of several product releases it should be blatantly obvious Google needs to focus on software distribution and leave the hardware business to the entities that are established to handle it...including customer service. And that you cannot deny either.

Sent from my Nexus 7 using Tapatalk 2
 

asanatheist

Well-known member
Jun 22, 2013
304
0
0
Visit site
In reply to howardv....

First get it straight. I did not ask for a loaner. I simply asked for a resolution to my issue that would not result in my having to go without for two weeks. Not an unreasonable request by any stretch.

Second, you have the audacity to call me arrogant for defending myself against condescending remarks yet say nothing to the perpetrators. What does that say about you. I have not once said anything insulting to or directed toward anyone therefore I would ask for the same or, as I mentioned, ask a moderator to step in and counsel the offending parties.

If you don't agree with me, that's fine. You are most certainly entitled to your opinion. As far as the car repair analogy...leave it at that...an analogy.

Lastly, I, and most likely everyone else knows who made this product. It is however Google's reputation on the line. They have prominently placed their name all over it. The Nexus line is in fact the face of Google as a platform for which developers are supposed to base their products. Today people have choices and no company, be it Google or Apple can afford to alienate customers because there is always someone welcoming them with open arms. Apple has set a world class standard with their customer service. And now its up to everyone else to step up to that challenge if they want to be successful.

If by chance I have increased Googles market share...good. I actually want them to succeed. However, as is my right, I will not choose another Nexus product after this and previous debacles involving their feeble attempt to be a hardware vendor. Over the course of several product releases it should be blatantly obvious Google needs to focus on software distribution and leave the hardware business to the entities that are established to handle it...including customer service. And that you cannot deny either.

Sent from my Nexus 7 using Tapatalk 2

How is Google alienating you? Let's take a look at the facts you have provided.


1. You are provided with a warranty. Apparently the problem with you is what the name on the shipping label is (Asus or Google). Both have the responsibility for warranty, and in the case of actual warranty it defaults to Asus.
2. Google or Asus would take 1-2 weeks either way. Lastly Google seemed to have some issues with getting back in touch with people ( see forums posts), often taking days and requiring call backs to get the ball rolling.
3. Neither offers advanced replacements I've asked about 2 weeks ago.
4. No one is leaving you out to dry.

So this leads me to believe you want special treatment, and your real beef is with the 2 week waiting period on a tablet.
 

sigaiser

Member
May 23, 2011
8
0
0
Visit site
How is Google alienating you? Let's take a look at the facts you have provided.


1. You are provided with a warranty. Apparently the problem with you is what the name on the shipping label is (Asus or Google). Both have the responsibility for warranty, and in the case of actual warranty it defaults to Asus.
2. Google or Asus would take 1-2 weeks either way. Lastly Google seemed to have some issues with getting back in touch with people ( see forums posts), often taking days and requiring call backs to get the ball rolling.
3. Neither offers advanced replacements I've asked about 2 weeks ago.
4. No one is leaving you out to dry.

So this leads me to believe you want special treatment, and your real beef is with the 2 week waiting period on a tablet.

Just see my first point...I would have hoped or thought or even expected a program be in place to process a replacement that does not require a consumer, not just me, to be without. Other leading tech companies have such programs...but they don't so so be it.

And yes, my real beef is the two week waiting period. I have said as much many times.

Sent from my Nexus 7 using Tapatalk 2
 

asanatheist

Well-known member
Jun 22, 2013
304
0
0
Visit site
Just see my first point...I would have hoped or thought or even expected a program be in place to process a replacement that does not require a consumer, not just me, to be without. Other leading tech companies have such programs...but they don't so so be it.

And yes, my real beef is the two week waiting period. I have said as much many times.

Sent from my Nexus 7 using Tapatalk 2

Can you name examples and specific devices in the same price range and specifications as the Nexus 7 that offer advanced replacements or faster warranty? I can't think of one except for Amazon's Kindle HDX and that's a entirely different ecosystem.

Quite frankly you sound like you came unprepared and have relied too much into the tablet to have gone without a backup. (extended warranty/ 2nd device etc).
IF you really need your tablet that badly, you should of thought about extended warranty, or buying a back up. Now that you are in a dilemma (which is your OWN problem), you expect Google or Asus to give you premium service, for a AT cost 0 profit device?

That's why I keep 2 smartphones, and 2 copies of my HDD's image in the event something fails I can be back up and running in 1 day or less. I don't pay for a device at cost and expect premium service, that is completely unfair to companies.
 

sigaiser

Member
May 23, 2011
8
0
0
Visit site
You seriously have to be kidding me?

So, Asus/Google set a price point and the consumer is to make concessions when it pertains to customer service issues. In this case a warranty issue. An IN warranty issue.

Also, now I am to think ahead and purchase not one but two devices so I will always have one as a backup. Wow. Let me just say, no thank you. I do not believe that is necessary.

My back isn't against a wall. In fact, after tomorrow, my tablet won't be used for more than just a couple of hours in the evening until next weekend. That's not the point.

And to be honest, I'm done trying to iterate my point.

Sent from my Nexus 7 using Tapatalk 2
 

asanatheist

Well-known member
Jun 22, 2013
304
0
0
Visit site
So, Asus/Google set a price point and the consumer is to make concessions when it pertains to customer service issues. In this case a warranty issue. An IN warranty issue.

You said it yourself, a warranty option was made available to you it was NOT denied. However not to your satisfaction nor your expectations of the tablet. Notice I said expectations because no where in the Nexus box or paperwork does it guarantee certain warranty period.
When warranty and policy doesn't fit customers expectations any exceptions or considerations are considered "customer service".
This is why I brought up Customer service.

Honestly I am not sure what the real problem is nor how we can help with your expectations.
Ill just leave it at good luck.

Not sure how to talk to you when you refuse to read your warranty statement. It's the same warranty statement as on many other high priced devices.
So yes it's up the consumer to understand that paying for a device with 0 profit will not yield premium service, or bells and whistles from customer service.

You know that phrase: Too good to be true? You are kind of applying expectations to the tablet that are unreasonable, it's almost as if you are acting as the sales man..

What would you say if a sales man told you he would sell you a car, warranty it for 1 year, offer next day repair on all defects, and offer you immediate customer service, loaners. But on paper none of that is mentioned but you neglected to read it?
ALL for $8.000 on a car worth $14,000 and costs $7.900 to make.

Read warranty statements on inexpensive devices. Warranty and customer service is NOT free.
 

sigaiser

Member
May 23, 2011
8
0
0
Visit site
Now that you are in a dilemma (which is your OWN problem), you expect Google or Asus to give you premium service, for a AT cost 0 profit device


By the way...what inside knowledge do you have as to Google's financials? It has never been said what their cost per product is...speculated and debated among the tech community yes, but never confirmed.

Additionally, the cost of product support is factored into the total cost per unit...not just hardware.. So is marketing, manufacturing, packaging, distribution...its business 101.

I don't mind have constructive dialog about this. But please do not speculate on something that can not not be substantiated. And I certainly wouldn't base my argument over those speculated facts. For all you and I know, its costs Google $10.19 per sku.

And no...I do not know what Hisense would do in this situation as they are really the only tablet in this price range. I do know for a fact I could have a Samsung sent with a c/c hold... Of course any Apple product the same. Even a cell phone through AT&T without a hold. So what I'm asking Asus/Google for is not out of the ordinary at all.

Sent from my Nexus 7 using Tapatalk 2
 

asanatheist

Well-known member
Jun 22, 2013
304
0
0
Visit site
Now that you are in a dilemma (which is your OWN problem), you expect Google or Asus to give you premium service, for a AT cost 0 profit device


By the way...what inside knowledge do you have as to Google's financials? It has never been said what their cost per product is...speculated and debated among the tech community yes, but never confirmed.

Additionally, the cost of product support is factored into the total cost per unit...not just hardware.. So is marketing, manufacturing, packaging, distribution...its business 101.

I don't mind have constructive dialog about this. But please do not speculate on something that can not not be substantiated. And I certainly wouldn't base my argument over those speculated facts. For all you and I know, its costs Google $10.19 per sku.

And no...I do not know what Hisense would do in this situation as they are really the only tablet in this price range. I do know for a fact I could have a Samsung sent with a c/c hold... Of course any Apple product the same. Even a cell phone through AT&T without a hold. So what I'm asking Asus/Google for is not out of the ordinary at all.

Sent from my Nexus 7 using Tapatalk 2

It's called Bill of Materials.
Last generation Nexus 7 sold for $199.99. It cost $166~ to make, that's labor and parts. A safe bet is this tablet is about $190-$200 to make due to the newer processor/gpu/ and calibrated IPS 1080P Screen which is also the brightest LCD on tablets. That screen will NOT come cheap at all.

In electronics market you need approximately 70% markup as an OEM JUST to make money after mfg/importing/taxes/r&d/warranty/customer service. And you need a 200% mark up once it hits retail for everyone to make money. (OEM/Distributors/Vendors).

The Nexus 7 was brought upon to compete with Amazon who was able to sell the Kindle for about $199 when it came out, undercutting most tablet makers. Amazon was able to do this because Amazon is a content provider, thus while selling the tablet at cost wouldn't produce money people using Amazon's services would.
The Nexus 7 is built around the same platform. Sell the device at cost, or loss and hope to make that money back via Google's services.

Quite frankly they are not making billions from the Nexus 7 since they are sold at cost and require people to buy Google services to make money. They said the 1st Gen Nexus 7 took 10% of Android tablet sales world wide. Let's say they sold 5 million tablets out of the 50 million sold in 2012 (correct me if I am wrong but I think this is an optimistic number).

The average android user spends about $16 on applications~ back in 2012 with the Original Nexus 7. A good chunk of that is going to developers, while a portion goes to google. Let's say it's 50/50.
so $16 times 5 million devices.
That is :$80,000,000 profit on apps/etc divided by 50%.
$45 million dollars in profits for device with a BoM of $166, not taking into consideration warranty/r&d/marketing, that is a $830,000,000 investment in hardware.

In business you also have to take into consideration potential gains. I would think Google could have easily made a 15%-20% gain if they had invested that money elsewhere maybe in different services or a higher profit margin tablet or simply NOT made the tablet at all since there are plenty of other Android tablets that will feed those exact same $16 to Google.

The Nexus family is quite a very expensive marketing tool for Google/Android.