Google Nexus 7 costs $151.75 to build, says iSuppli

Jul 11, 2012
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Google Nexus 7 costs $151.75 to build, says iSuppli

Google dropped some hints that the Nexus 7 was essentially being sold at cost, and previous estimates have put the build cost of the 8GB version of the tablet at around $184 which would leave Google and ASUS with a mere $15 in profit. That’s not even taking into account marketing, research and development, and all the other areas that make up the creation of a gadget. Now IHS iSuppli has taken a look at the Nexus 7, and their own teardown estimate puts the cost at around $152.

iSuppli spoke with AllThingsD regarding the teardown, and believes the 8GB version of the tablet costs $151.75 to build. The 16GB model, meanwhile, costs around $159.25, the difference between the cost of the extra memory. iSuppli estimates that Google will be breaking even on the 8GB model, but will turn a small profit on the 16GB version, which retails for $249.99.

The previous estimate by TechInsights was higher, but the company was estimating the number without having access to the hardware. The iSuppli team, meanwhile, performed their best guess after having full access to a Nexus 7 and tearing it down. Google may not be making any money on the 8GB model, but it’s offering impressive specs for the price. An NVIDIA quad-core Tegra 3 processor can be found inside with 1GB of RAM,  paired with a 7-inch 1280x800 IPS display and the latest version of Android, Jelly Bean.


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