Google May Be Selling Nexus 7 At a Loss

[Guest]

Analysis shows that Google may be selling the 8 GB model of the Nexus at a loss...

Google May Be Selling Nexus 7 At a Loss : Read more

 

[tektek2000]

mmm I should be an analyst... since stating the obvious lately makes it to Tom's..

 

[A Bad Day]

Tablets being sold at a loss. Hmm...

Consoles are being sold at a loss except for the Wii...

Essentially all printers are being sold at a loss (though printer ink cost around $4,400 per gallon)...

Why am I surprised?

 

[A Bad Day]

And I also forgot about the phones. Some are "free", only if you sign up for a wallet-draining 2-5 year contract that docks $200 from your credit card if you cancel it.

 

[stingray71]

Not worried about them, somehow, I think their doing just fine.

 

[Filiprino]

They aren't selling at a loss. Packing and distribution may account $5. Marketing is a one time thing. Sell hundreds and thousands of units while getting $10 per device and you get enough profit out of it. And the 16 GB model has more profit.

Of course, this is if we take these numbers as true.

No one is selling things at a loss. That's a stupid business. Even if you get money afterwards (software, games). No one sells at a loss if there's not guarantee that you will get the money, as in phone contracts were you are obliged to pay for X months, or when you ask your bank for a loan.

 

[Filiprino]

They aren't selling at a loss. Packing and distribution may account $5. Marketing is a one time thing. Sell hundreds and thousands of units while getting $10 per device and you get enough profit out of it. And the 16 GB model has more profit.

Of course, this is if we take these numbers as true.

No one is selling things at a loss. That's a stupid business. Even if you get money afterwards (software, games). No one sells at a loss if there's not guarantee that you will get the money, as in phone contracts were you are obliged to pay for X months, or when you ask your bank for a loan.

 

[zulutech]

Good job Google! Someone innovative without Apple's insane profit margins!

 

[Guest]

Maybe the reason they are selling at loss is because it is "not cool"...

 

[_Pez_]

I think it is a great gadget, I am willing to buy one when they decide to sell it in mexico :S

 

[watcha]

[citation][nom]zulutech[/nom]Good job Google! Someone innovative without Apple's insane profit margins![/citation]

what's ironic is that the rumoured cost of the iPad for Apple is about the same as the claimed cost of this Nexus 7, but the iPad contains a far higher specification.

It just shows you that Apple achieves such high profit margins by being able to drive down costs as much as anything else - that's the benefit of focusing on just 1 or 2 devices but on a massive scale.

 

[SK711G]

[citation][nom]watcha[/nom]what's ironic is that the rumoured cost of the iPad for Apple is about the same as the claimed cost of this Nexus 7, but the iPad contains a far higher specification.It just shows you that Apple achieves such high profit margins by being able to drive down costs as much as anything else - that's the benefit of focusing on just 1 or 2 devices but on a massive scale.[/citation]

You are so right, apple only makes 1-2 devices, ok so lets count, iPad, iPhone, iPod touch,iPod nano, iPod shuffle, iPod classic, Apple TV, MacBook Air, MacBook Pro , Mac mini, iMac, Mac Prom thats 12, yup thats 1 and 2, just a bit closer together! now add the models with in each class, 50-60, idk, i have better things to think about

 

[watcha]

What I said:

[citation][nom]watcha[/nom]focusing on just 1 or 2 devices[/citation]

What YOU saw:

[nom]blind_person[/nom]apple only makes 1-2 devices

OK so yes, 'lets count; - on a scale of 1-10 how epically you failed to read.

With the 37 million iPhones that customers snapped up over the holidays, Apple has sold 183 million of the devices since the product went on sale in 2007. Revenue from the iPhone and iPad — neither of which could be bought five years ago — now accounts for 72 percent of Apple’s total revenue, underscoring the transformation of the company.

http/www.nytimes.com/2012/01/25/technology/apples-profit-doubles-as-holiday-customers-snapped-up-iphones.html?pagewanted=all

iPad = 1 device (at any given time)
iPhone = 1 device (at any given time)

Now what is 1 + 1?

You definitely have better things to think about... school would be high up on that list.

 

[SK711G]

if you wonder why i segmented the products as such, its only how apple does it, http/store.apple.com/us

 

[watcha]

If you wonder why I used the word 'focusing', it's only how the world defines it:

http/www.thefreedictionary.com/focusing

A center of interest or activity

http/www.nytimes.com/2012/01/25/technology/apples-profit-doubles-as-holiday-customers-snapped-up-iphones.html?pagewanted=all

now accounts for 72 percent of Apple’s total revenue

 

[SK711G]

probably not the best business strategy with 72% in one of 12 products, mobile phones, i guess it did give apple an extra decade before bankruptcy, you dont have Mr.Jobs anymore, w/o him apple almost died, if you dont learn from history, your bound to repeat it i hopes me book learn'n is goods enuff for yous in yalls ivory tower

 

[watcha]

I don't quite see how your rant has any relevance to my original point that Apple achieves low cost prices by focusing on 2 products... a point which I maintain and you haven't disproved.

Since they are currently the richest tech company in the world I think they would beg to differ about your 'expert' views on their strategy too, but I don't really care about that.

you dont have Mr.Jobs anymore

'you' ? Are you confusing me with Tim Cook?

Bless, lol.

 

[kenyee]

Google has said they're not looking to profit from the Nexus 7 already. It's really meant to jump start the moribund Android tablet market...both developers and users.

Amazon's Kindle is running ancient 2.x and Google really wants devs to use 4.x.

Apples doesn't make much from their iPad either...their huge profit comes from the 30% cut in their app store....

 

[watcha]

Apples doesn't make much from their iPad either

They make 50% profit. As in, if they sell an iPad, half of it is pure profit.

 

[eddieroolz]

Google's trying the Amazon approach I think. Whether it will work for Google or not, only time will tell.