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Thread: Google Breaking Even on Nexus 7 Tablet in the Google Play Store; Sold for $0 Profit

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    Google Breaking Even on Nexus 7 Tablet in the Google Play Store; Sold for $0 Profit


    According to statements from Android head Andy Rubin, the Google Nexus 7 tablet will not be making any money on the sale of the hardware. Apparently, the sell through price on the Google Play Store is a break even amount with $0 in actual profit. Rubin said, “When it gets sold through the Play store, there’s no margin, it just basically gets [sold] through.” In fact, in the interview he made it clear that Google is absorbing all of the costs of the device, and that it could end up being a net loss per unit for the hardware. Google's whole goal is to build an ecosystem of content to eventually rival Amazon. They intend to make money by promoting content sales through the Google Play marketplace. They have even added magazines, books and TV shows to their lineup of movies, music and more.

    Source: NexusTablets.net via BGR

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    Quote Originally Posted by dgstorm View Post

    According to statements from Android head Andy Rubin, the Google Nexus 7 tablet will not be making any money on the sale of the hardware. Apparently, the sell through price on the Google Play Store is a break even amount with $0 in actual profit. Rubin said, “When it gets sold through the Play store, there’s no margin, it just basically gets [sold] through.” In fact, in the interview he made it clear that Google is absorbing all of the costs of the device, and that it could end up being a net loss per unit for the hardware. Google's whole goal is to build an ecosystem of content to eventually rival Amazon. They intend to make money by promoting content sales through the Google Play marketplace. They have even added magazines, books and TV shows to their lineup of movies, music and more.

    Source: NexusTablets.net via BGR
    explains the no sd or usb.... yeah gl with that google.. if we wanted an echosystem we would buy apple.

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    Quote Originally Posted by anarox View Post
    explains the no sd or usb.... yeah gl with that google.. if we wanted an echosystem we would buy apple.
    Exactly what I was thinking.

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    I don't mind an eco-system, but no SD card is just plain stupid. Seriously, how much more would it have cost?!

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    Quote Originally Posted by MA83 View Post
    I don't mind an eco-system, but no SD card is just plain stupid. Seriously, how much more would it have cost?!
    According to Mouser Electonics? In lots of 1,400? Less than $2 US. In the lots Google is making these? Likely less than 50 cents.

    I think it was deliberate-- why would they also delete the USB HOSTING feature in JB too? Since HC, the majority of tablets have been able to utilize the USB charging port, as a host (i.e. you can connect external storage devices, such as thumb drives, etc). All you needed was a gender-changer thingy, that takes your male USB plug and turns it into a female plug, for USB hosting.

    But apparently, they deliberately disabled this feature on the 7.

    Leaving that in, would have literally cost them nothing-- disabling it, cost them some developmental time: money in other words.

    I have to think Google's deliberately limiting these, just as Amazon did with their Kindles (the Kindle 1 had a full-sized SD slot-- all the rest, had none).
    MA83 likes this.
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    Yeah Bob, you are bang on - I think Google have finally outed themselves with the combination of the Nexus 7 & Jelly Bean & the "Play" developments.

    We can now see that their concept of "open source" was nothing of the kind - they just were biding their time before revealing that they too want to " do an Apple ". Frankly, if that is the case, then I cannot see any future in android on tablets - with the MS devices imminent & the iPad so dominant the only future I can see for android is on phones & completely stripped down content devices like the Nexus 7.

    Excruciatingly disappointing, TBH
    MA83 and Bob_of_QF like this.

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    considering some sources saying that apple and android are now neck and neck in shares of tablet OS, I doubt they'll be going anywhere, many people like the unlockedness (?) of android which wont be found even on the Surface, it also has so much more choice compared to apple, high budget, low budget, W8 mobile will be much more demanding, which will require more power and therefore more expensive machines

    I think they are making money from the tablet sales, albeit a small amount but still a profit, they can get the parts so cheap when building in the millions so will definitely be making a profit, I also think the higher storage models will make more money, seeing as the sightly larger chip is just pennies extra and they charge an extra £50 or whatever
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    I didn't mean "no more android tablets", I meant "what's the point of high end android tablets?"

    If you want a "free" device, anything that will run Win8 should run Linux.
    If you want a quality echosystem, buy Apple.
    If you want a budget device, buy a Nexus / Kindle Fire (still only available in America)

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    This is making me lean towards a higher end MS tablet even more. At least then I can run software that I can't now on my tablet.
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    Quote Originally Posted by MA83 View Post
    This is making me lean towards a higher end MS tablet even more. At least then I can run software that I can't now on my tablet.
    but unless you get the i5 one, you wont be able to run your programs, and that will be over $1000, the cheaper one will have an ARM chip, meaning all the programs will have to be rewritten which puts android in a better position for amount of programs as there are barely any apps available for Windows ARM
    Bob_of_QF likes this.

 

 
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