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:
- NVIDIA Tegra 3 – Quad-core mobile applications processor
- Hynix H5TC2G83CFR – 2Gb DDR3 SDRAM
- Kingston KE44B026BN/8GB – 8GB Memory Module
- Realtek (RMC) ALC5642 – Audio CODEC + Headphone Amplifier
- Maxim MAX77612A – Power Management IC
- Texas Instruments TPS63020 – Buck-Boost Converter
- Fairchild FDMC6675BZ – P-Channel Power MOSFET
- Texas Instruments SN75LVDS83B – LVDS Display SERDES
- ELAN Microelectronics eKTF3624BWS – Controller for Resistive Touchscreen
- ELAN Microelectronics eKTH1036BWS – Controller for the Resistive Touchscreen
- Broadcom BCM4751 – Integrated Monolithic GPS Receiver
- InvenSense MPU-6050 – Six-Axis (Gyro + Accelerometer) MEMS Device
- AzureWave AW-NH665 – 802.11n WiFi / Bluetooth / FM Radio module
- NXP Semiconductor PN65 – Secure NFC Module
Source | Via