Google Nexus 7: Hell To Build, Zero Profit Margin

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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.

Mike is the man who reviews gadgets that aren’t mainstream or products that can’t exactly be classified as consumer electronics e.g. portable talking toilets. It’s always interesting to read about the crazy products we have here in Asia that just don’t get as much publicity as they warrant.