Google Nexus 7 hitting other Android tablets hard

It seems that some retailers, like Carphone Warehouse, are actively seeking to push existing Android tablets out the door just as the Google Nexus 7 tablet goes on sale at £159 for the 8GB version and £199 for the 16GB one.

Amazon has slashed 43 per cent off the price of the Lenovo IdeaPad K1 while Carphone Warehouse is clearing out existing tablets with discounts of up to 50 per cent on some models like the Motorola XOOM series (Motorola being owned by Google, this is indeed interesting).

As expected, the arrival of the Google Nexus 7 could have a more devastating effect on the existing Android tablet market than Apple's iPad, forcing out vendors that are teetering on the verge to stop building tablets altogether (or switch allegiance to other operating systems like Windows).

And unfortunately there's not much they can do. The 8GB version of the Nexus 7 tablet carries a bill of materials (BoM) of $159.25 with a selling price of $199.

The BoM excludes any licenses, packaging, handling and shipping, software, assembly or aftersales costs, which means that Google is possibly making less than $10 per unit - not dissimilar to what Amazon is earning from the Kindle Fire, suggesting that the latter, not the iPad, is the real competitor of the Nexus 7.