It was iFixit that first tore down the Nexus 7 tablet and as a result we can now see how much money Google is making from selling the device itself.
For the 8GB model, the margin is pretty slim (if it exists at all) as its parts were estimated to cost $184 while it sells for $199. That’s a small profit margin whichever way you look at it, and this price doesn’t even factor in manufacturing, marketing, shipping or research and development.
Things look a bit different for the 16GB model. You see, it costs $50 more than the 8GB model and since they are using virtually the same components, except for an extra flash chip worth around $8, it’s actually sold for a small profit. So, Google’s statement that it hardly makes any money by selling the Nexus tablet itself turns out to be true.
Here’s the list of the key components, in case you are interested:
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