Google reportedly makes $0 profit off Nexus 7 sales

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Yesterday, Google released their very first line of self-branded tablets, the Nexus 7. One of the biggest selling points is its cool price tag, but the question is – how do they get the price so low? Easy… according to Andy Rubin himself, Google makes no profit off of the Nexus 7.

That’s right, folks. Google makes $0 in profit off of hardware sales for this beauty. Google will focus on making money through content sales, rather than on upfront pricing. It’s a risky move, but Google is confident it’s the right one. According to an interview with All Things D, Andy Rubin said:

“When it gets sold through the Play store,there’s no margin, it just basically gets [sold] through”

In fact, Rubin said in the interview that Google is actually absorbing marketing costs for the tablet, meaning Google could theoretically end up losing money on each unit sale – depending on how the marketing campaign goes.

Rubin was asked if he thought this would put pressure on Google’s Android partners, to which he replied, ““there is plenty of room left for Android tablet innovation”.

via bgr

6 COMMENTS

  1. […] Among the myriad of announcements made during yesterdays keynote, there was the announcement of magazines and the ability to rent and purchase TV shows as well as movies in the Play Store. These were obviously much needed improvements if Google wants to actually make some money of off its zero percent profit Nexus 7. […]

  2. Google does not make any direct profit from the other Nexus devices too i guess. It the Hardware vendors who would be making a margin , albeit probably a small one in the case of the Nexus 7

  3. […] Among the myriad of announcements made during yesterdays keynote, there was the announcement of magazines and the ability to rent and purchase TV shows as well as movies in the Play Store. These were obviously much needed improvements if Google wants to actually make some money of off its zero percent profit Nexus 7. […]

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