Google Nexus 7 tablet teardown confirms loss leader status

Analyst firm UBM Techinsights has published a teardown report of the Nexus 7 with a complete breakdown of the components found inside the tablet.

The key components identified include the quad core Nvidia Tegra 3 SoC clocked at 1.3GHz, 1GB of DDR3 SDRAM (Hynix H5TC2G83CFR), 8GB memory module (Kingston KE44B026BN/8GB), Realtek (RMC) ALC5642 audio CODEC & headphone amplifier and a few more bits and pieces.

UBM Techinsights analysis doesn't account for the capacitive display or for the chassis, for the physical connectors or or the battery, nor does it factor in the cost of manufacturing, marketing, various licenses, shipping, packaging or research and development.

Another teardown specialist, Fudzilla, estimated that the cost of building the 8GB Nexus 7 was around $184 which means that Google is hardly going to make any money out of this model and could end up with a marginal loss.

On the other hand, Google will sell the 16GB version for $50 extra which may allow it to break even on this model given that the 16GB flash memory module is only $8 or so more expensive than the 8GB one.

Source : UBM Techinsights