Nexus 7 Wiki... A good read...

[mathelm]

Nexus 7 - Wikipedia, the free encyclopedia

Design work on the Nexus 7 began in January 2012 after a meeting between executives of Google and Asus at International CES. The device's design was based on Asus' Eee Pad MeMO ME370T tablet that had been showcased at the conference. Following a rapid four-month development period in which the pricing model was modified to reach a US$199 price point, mass production of the Nexus 7 started in May 2012. It was unveiled at Google I/O, Google's annual developer conference, on June 27, 2012, and became available for pre-order through Google Play on the same day. Shipping commenced in mid-July to Australia, Canada, the United States, and the United Kingdom, and releases in France, Germany, and Spain followed in August. Google expanded the Nexus 7 lineup in October 2012 with the introduction of 32 GB versions, available in Wi-Fi?only and HSPA+ cellular-ready varieties.

In an analysis of its components, IHS's iSuppli estimated that the production cost of the 16 GB model of the Nexus 7 is US$159.25 per unit, US$19 more per unit than the Kindle Fire.[19] The Nexus 7's higher production costs were attributed to its use of a higher-quality display, a quad-core processor (instead of the Fire's dual-core), and its inclusion of a camera and near field communications (NFC) functionality. The firm's senior analyst Andrew Rassweiler suggested that the success of the HP TouchPad's fire sale helped increase the commercial viability of low-cost tablets from major brands, and the failures of other high-end tablets helped reduce the cost of parts, making tablets like the Kindle Fire and Nexus 7 possible. However, he also noted that both tablets were being sold at thin profit margins, primarily due to their respective ties to content services.

A side note (not part of the wiki)..

ipad mini - - - - build $188, sell $329
iphone5-16gb - build $207, sell $649
iphone5-32gb - build $217, sell $749
iphone5-64gb - build $238, sell $849

 

[Minkey1]

Thanks for sharing, makes an interesting read, especially your side note. I've seen sideswipes elsewhere at the N7/10 "subsidised" pricing, as if that's a bad thing.

Once we've bought the device, we have the choice to buy or not at Google Play, so I don't see the logic.

In comparison, iDevices are lauded for being premium products, whilst no-one questions their gross (very gross!) profit margins, and tethering to iTunes and the iTunes Store. "Ker-ching" :-$

Doesn't make any kind of sense to me.

 

[bigtroutz]

you have to figure in the same kind of context that amazon has posited. "We sell content as well as hardware and the kindles automatically funnel content to us"

the difference is that Google primarily sells advertising, and user info, not hardware and content. They get to serve ads in all of the browser use and also get to keep track of what the users behavior is like (like facebook does) so that they can sell user profiles to advertisers. Many of the background processes installed by default in the N7 are there for Googles benefit in this regard, not yours.

 

[Ry]

A side note (not part of the wiki)..

ipad mini - - - - build $188, sell $329
iphone5-16gb - build $207, sell $649
iphone5-32gb - build $217, sell $749
iphone5-64gb - build $238, sell $849

Even better if you posted cost to manufacture/retail price of products not made by Apple.

 

[Ry]

Thanks for sharing, makes an interesting read, especially your side note. I've seen sideswipes elsewhere at the N7/10 "subsidised" pricing, as if that's a bad thing.

Once we've bought the device, we have the choice to buy or not at Google Play, so I don't see the logic.

In comparison, iDevices are lauded for being premium products, whilst no-one questions their gross (very gross!) profit margins, and tethering to iTunes and the iTunes Store. "Ker-ching" :-$

Doesn't make any kind of sense to me.

Why does everyone point to the Apple when it comes to profit margins?

We can easily take a look at two recent examples. Compare Google's Nexus 4 pricing on their Play Store vs. retail pricing from other retail channels (like T-Mobile). Heck compare the full retail price on Nexus 4 to the similar LG Optimus G.

Two posts so far here make it seem like the only Apple has a "high" markup on their products. That's not the case.

 

[mathelm]

I'll agree that the N4 has a healthier profit margin than the N7, but no where near apples markup. Plus the prices from Tmobile and such require a 2 year contract... don't they? If so, then you're actually paying more than the $299-349 from google play.....

And I'm not against markups and profit margins. I just don't like the screwing on the back end by propriataraly locking everything down.....

 

[Ry]

I'll agree that the N4 has a healthier profit margin than the N7, but no where near apples markup. Plus the prices from Tmobile and such require a 2 year contract... don't they? If so, then you're actually paying more than the $299-349 from google play.....

And I'm not against markups and profit margins. I just don't like the screwing on the back end by propriataraly locking everything down.....

From T-Mobile, the Nexus 4 is $199 on a two-year contract and $549 without a contract.

 

[mathelm]

Even better if you posted cost to manufacture/retail price of products not made by Apple.

I ran across that info in the same search, something to do with a post here, can't remember what it was. But the N7 cost is listed in the wiki quote.

I am however extremely anti apple. Have been sense the late 80's, along with tandy and all the other proprietary computer makers. All of who went out of business same as apple would have if it weren't for microsoft trying to do the same thing on the software side, and needing apple there to take some of the monopoly heat off from the gov. So it lent them a few 100 million to stay afloat when no one else would....

Google only luvs my money also, only difference is that with their market approach (build a better mouse trap), like IBM compatible computers, they have to actually provide a better/cheaper service to the customer. So to my thinking, the one is capitalist while the other is commie/socialist.....

From T-Mobile, the Nexus 4 is $199 on a two-year contract and $549 without a contract.

So one should buy from google play.....

 

[bigtroutz]

I like open software and hardware when I can get it; since it often becomes a battle to the most for the least and always comes with "the wild, wild west !!" and all that entails.

I also like the wild wild west !! yeee hawww, survival of the fittest, evolution in action !!

 

[Minkey1]

you have to figure in the same kind of context that amazon has posited. "We sell content as well as hardware and the kindles automatically funnel content to us"

the difference is that Google primarily sells advertising, and user info, not hardware and content. They get to serve ads in all of the browser use and also get to keep track of what the users behavior is like (like facebook does) so that they can sell user profiles to advertisers. Many of the background processes installed by default in the N7 are there for Googles benefit in this regard, not yours.

Indeed. I got a red mist before the eyes. In my haste, I'd completely overlooked that Google's primary purpose is to make money from the sale of information, not movies :-[

Thank you.