Although at first we’ve heard that ASUS and Google may be making no profit on the Nexus 7 tablet, now it appears they’re actually making $15 per unit. The tablet’s estimated production cost is $184 and with a $199 price it’s easy to do the math.

The price is still a very appealing one, don’t get me wrong. However, unlike Amazon that’s actually losing money on the Kindle Fire (or making no money), the Nexus 7 will bring some profit to its makers. It’s not that big of an amount, especially since from what I know Microsoft makes about $5 for each Android device sold, because of patents, so it’s pretty close to them this time. Just so you know, the number $184 was reached through a teardown by TechInsights, so it’s not official, meaning it could be higher… or lower.

Of course, we also have to add costs for R&D, logistics, marketing and whatnot, so that $15 is gone faster than you can say it. I have to remind you that ASUS and Google said not so long ago that they’re selling the tablet at cost and I don’t think they’d be lying about that. However, the 16GB $249 Nexus 7 is the one with a more decent profit, sitting somewhere around $55. Of course, Google will capitalize on the books, movies and magazines they’re going to sell through the Play Store on this device… but what about ASUS? Do they get a percentage too?

  • Whatthef2588

    Production cost 184 bucks? YEAH SURE… don’t believe this global propaganda shit. They pay 50 cents for the worker, hardware is cheap like shit and they produce some small crap for 184 bucks – YEAH SURE. Next year they will make the “new, super hiper diper” version and this current gen will be total shit? Just because they tell you so?