Google Nexus 7 has managed to gather a lot of attention from the public already. While there is still no information on the exact amount of pre orders placed, it is believed to have gone over the roof, especially considering the price of the two variants. What makes the tablet unique is its incredibly low pricing.
The device, as one of Android’s founders mentioned, was produced at cost with little or no profits. You would wonder how Google manages to sell a Tegra 3 quad core tablet for a mere $199 (8GB model) and with limited profits, but that’s what the tablet is all about. Google expects such sales from the device that even lesser profits wouldn’t make much of a difference.
And to paint a picture of exactly how much the tablets cost, some folks have torn down the device and come up with the exact figure. The 8GB Nexus 7 apparently has components valued at over $184, which is not including the advertisement, R&D and other expenses. This pretty much tells you how little Google makes off its Nexus 7 device. Apart from the Tegra 3 quad core chipset provided by NVIDIA, the tablet features parts from major manufacturers like Kingston, Texas Instruments etc. Head over to the links provided at the end of the article for more info on what exactly the Nexus 7 has inside.
The device isn’t available yet, but it was believed that the company will start shipping pre orders in a week’s time. Users like what they see with the Nexus 7 and that’s exactly what Google wants. With this revelation, Google could expect some more pre orders given that there are very few tablets out there apart from the Kindle Fire that come close to the pricing. However, Google expects to make off of digital downloads from the Play Store, something similar to what Amazon did with the Kindle Fire. Also, it is important to note that the company probably has a bigger profit margin on the 16GB version of the tablet.
Most users will prefer the Nexus 7 with more storage, so Google has that figured out. Let’s hope Apple doesn’t have a problem with the Nexus 7 just when the launch is nearing. It was however reported that Nokia could have a problem with the Nexus 7 for allegedly infringing on some of its wireless patents. Nokia has been surprisingly calm as of now, so we’re not really sure if a legal battle will ensue.