Google has just revealed its mini-tablet – co-branded with Taiwan’s Asus – that’s priced to compete with Kindle Fire called the Nexus 7.
Google Nexus 7 tablet torture to build, zero profit margins
In the past Google has worked with HTC and Samsung to make co-branded Android smartphones in the Nexus range. This new Nexus 7 will be its first tablet. Google gave Asus a four-month deadline to build the tablet – four months to build a high-end tablet that would retail at just $200. A breeze! Asus chairman Jonney Shih described Google as demanding; company engineers described the process as torture.
Shih moved his workers closer to Google, and gave them a 24-hour development cycle. Then he recruited another 20 people…..and then another 20. However, the team has learned loads from working together with Google engineers and both companies feel they’ve produced a tablet computer that can compete with Kindle Fire. The Nexus 7 may have a bargain basement price tag, but it comes with a high-end laminated display, a quad-core chip and other top notch specs.
The companies planed down their margins to razor thin to do this, though. Google is selling the Nexus 7 at virtually cost price through Google Play while absorbing marketing costs. This costing would prove impossible for any other device makers trying to sell cheap Android tablets, especially the lower-end tablets made by second-tier brands in China.
The assembly of the Nexus 7 is done by Quanta Computer, the biggest notebook ODM company in the world.