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

[dgstorm]

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

 

[tjk629]

Will this be only through the Play Store?

 

[94lt1]

I was wondering if Google was going to take in amazon..... interesting.

DROID RAZR MAXXIMIZED!!!! PREPARE TO BE VANQUISHED!!!

 

[nikecar]

Will this be only through the Play Store?

i saw a quote from Google saying later it will be via retail locations. But for now its the Play store

 

[acousticshade]

I have to stand up and applaude Google here. While true that this is a marketing ploy to get market share away from Amazon, it's also a huge bone that they are throwing to consumers. Based on the other forum links above, this tablet seriously outperforms anything in it's price range which really makes it a lot more future proof + its Nexus + its got NFC.

Thanks Google, glad to do business with you.

 

[gadgetrants]

I totally buy the "$0 profit" argument. Well, sort of.

- $199 8GB Nexus 7 profit = $0

ah, but

- $249 16GB Nexus 7 profit = $48

I guess the claim is at least half-true!

-Matt

DISCLAIMER: Yeah I totally made up the cost of the extra 8GB...but we KNOW it's << $49.