When Google announced their Nexus 7 tablet, they revealed that they were not making any money on the device, and we had previously heard that the manufacturing costs of their new Android 4.1 Jelly Bean tablet were close to the $199.99 retail price for the 8GB model.
We had previously heard that Google may even be making a loss on the device, as it ships with a $25 gift card for the Google Play Store but according to a recent report from All Things D, who spoke to iSuppli, the Google Nexus 7 tablet is estimated to cost around $152 to manufacture.
This would mean that whilst Google are not making any profit on the device they are not actually making a loss on the 8GB model, on the 16GB model they could be making a small profit as this is apparently $7 more expensive to make than the 8GB model, so they cost would be $159 and the device retails for $249.99.
Source Android Community
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