According to a recent teardown of the Nexus 7, the combined cost of the hardware components is $184, and with a selling price of $199 for the 8GB model this leaves Google $15 to pay for marketing, R&D and manufacturing costs.

Profit margins on the 16GB unit look a little better, as an additional 8GB of NAND memory costs around $8 but they are charging an extra $50 for the device.

Overall this largely confirms the revelation from Asus’ Chairman Jonney Shih and Google’s head of Android Andy Rubin, that the Nexus 7 is being sold at cost.









Source: Android Authority Via: LandOfDroid