Google’s Nexus 7 didn’t come as a great surprise when it launched at IO 2012 yesterday, but the $199 price tag still raised some eyebrows in astonishment. At under half the price of a new iPad, it’s competitive – though very different – to Apple’s slate, but it also undercuts a fair number of other Android tablets too. You can’t even accuse Google of milking international buyers to make up the difference, as prices outside of the US are, surprisingly, very reasonable too. The Nexus 7 will sell from £159 in the UK, for instance, versus expectations of around £250. So, how has Google (and hardware partner ASUS) managed to make the Nexus 7 so cheap?