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Google Nexus 7 Parts Cost $18 More Than Kindle Fire

judgecorp writes "The parts for a Google Nexus 7 tablet cost only $18 more than the materials for an Amazon Kindle Fire, according to a teardown by IHS. This means while Amazon initially took a loss on each tablet sold, Google will break even on its 8Gb tablet, and make a small profit on the 16Gb model."

6 of 146 comments (clear)

  1. Re:OhmyGOD yes!!! by DC2088 · · Score: 5, Informative

    Shipping, packaging, advertising, and continued tech support costs are probably factored in.

  2. Re:Doomed competition by gl4ss · · Score: 4, Informative

    I'd take the bill of material analytics with a grain of gunpowder and salt. and anything iSuppli says anyways.
    neither amazon or asus is paying list pricing for components and iSuppli doesn't know amazons or asus manufacturing expenses. furthermore they have no idea when each company bought the parts they bought.

    what they work as is a list of chips inside both devices.

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  3. Re:Doomed competition by Andy+Dodd · · Score: 4, Informative

    Because you often use a tablet like this in places (buses, trains, planes, cars you are not behind the wheel of) where there is no network connection.

    Even for those situations listed above where you could tether to a smartphone, extremely low data caps (you'd kill your data allowance on most carriers with a single 720p movie for example) mean that cloud storage of video is nowhere near ready for mobile devices, and even cloud storage of music is a bad idea. (Streaming music frequently is a good way to hit your data cap.)

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    retrorocket.o not found, launch anyway?
  4. Re:Apple & Amazon have own retail channels by bWareiWare.co.uk · · Score: 4, Informative
  5. Re:OhmyGOD yes!!! by ColdWetDog · · Score: 3, Informative

    You're forgetting hookers and blow.

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  6. Re:In what quantity? by jrumney · · Score: 5, Informative

    You don't really get massive mark-downs for volume - maybe 70% difference from 1 to 1 million.

    I don't know which branch of electronic manufacturing you're talking about, but the one I'm familiar with has a MASSIVE per unit cost difference between buying one off components and buying them by the reel, and another big cost drop once your volume becomes high enough that the component manufacturer will deal with you direct instead of having to go through a distributor.