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  1. #1
    Editor in Chief dgstorm's Avatar
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    Google Breaking Even on Nexus 7 Tablet in the Google Play Store; Sold for $0 Profit


    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: BGR

  2. #2
    Administrator Droid-Xer's Avatar
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    Competition amongst conglomerates? Yes please! Lower price points for all!

  3. #3
    Super Moderator RobKort's Avatar
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    Agree!....

  4. #4
    Senior Member dennyjones's Avatar
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    This doesn't surprise me. It's good business sense to run the other guy out of the market. Here in my home town, we use to have CVS drugstores. Soon after they ran the small home town pharmacies out of town, Rite Aide built next to them and undercut their prices. It wasn't long before the larger chain was the only pharmacy in town.

    Amazon did the same thing with the Fire.

  5. #5
    Senior Member redtarget's Avatar
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    Sounds like they are taking a page out of the game console books!

    Get the hardware in people's hands and earn your money from software sales! This is a great way to get your product out there and let more people see what tablets are about. Us the $25 play store credit that pre order are getting is a brilliant way to show new users how easy using the play store is.

    Genius!

  6. #6
    Senior Member 4dthinker's Avatar
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    Costs are a variable that usually goes down as volumes sold go up and time goes on. So although they may be selling the 7 at current costs, that doesn't mean they won't be making a profit on them once 1,000,000 or so are sold.

  7. #7
    Banned halibaitor's Avatar
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    I'm betting that the zero profit is happening on the 8 Gig machine, which means that the 16 Gig machine is already showing a profit.

  8. #8
    Junior Member jackie robinson's Avatar
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    I thought this was the case. It's amazing value. I wonder where all this is leading though. Will all tablets be either Google. Microsoft or Apple branded?

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