Researchers: Google earns $15 for each Nexus 7 sold

by Doug Drinkwater

July 7 2012

The Nexus 7 has become a direct competitor to Amazon's Kindle Fire
The Nexus 7 has become a direct competitor to Amazon's Kindle Fire

Research firm UBM TechInsights has revealed that Google is earning a rather meagre $15 for each Nexus 7 sale, illustrating once again that Google is taking the Amazon way in relying on content sales.

The researcher estimates that the preliminary cost of the Nexus 7 is $184, a figure which is thought to include the components and assemble of the device, and reckons the tablet’s decent 7-inch 1280 x 800 resolution display costs $49 alone.

By some way of comparison, Amazon is reportedly making a loss on each Kindle Fire tablet, although CNET claims that Jeff Bezos’ firm actually makes a handy $46 profit on each sale. The same source says that the Fire’s slightly inferior 7-inch 1024 x 600 display costs $35, and says that Google and Amazon are paying $18 and $25, respectively, for their tablet’s chipsets.

UBM TechInsights recently tackled the cost of the new iPad, and believes that the 9.7-inch tablet costs $278 to put through production, meaning the Cupertino giant is generating a massive $171 in profit for each $499 iPad sold.

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