Google Nexus 7 tablet costs estimated at $US130 to $US210

IHS iSuppli bases estimate on tear-downs of other tablets

If the starting price of the expected Google Nexus 7 is $US199, Google could be spending $US130 to $US210 for materials and manufacturing costs for each device, according to a preliminary estimate from IHS iSuppli.

Anything above the $US199 price for materials and manufacturing costs would result in a loss for Google. Many analysts say Google might be willing to take a loss to gain market share against other low-cost tablets such as the 7-in. Kindle Fire, which sells for $US199.

The Nexus 7 hasn't even been announced, although Google may do so at the start of its Google I/O conference Wednesday. IHS has not seen the Nexus 7 device, but derived its estimate by comparing reported components of the Nexus 7 with two other tablets on the market that it has examined in detail, at the request of Computerworld.

IHS analyst Andrew Rassweiler said the Samsung Galaxy Tab 7.7, which IHS has examined and which has a price tag of $499.99 with Verizon Wireless, cost nearly $300 in materials and manufacturing. By contrast, the low-price 7-in. tablet called the Aino Novo 7 Paladin (selling on Amazon for $114.99) cost about $100 for materials and manufacturing, he said.

Given the price tags for those two tablets, Rassweiler said, "I could see a potential Nexus 7, 7-in. tablet bill of materials [including manufacturing costs] being anywhere from $US130 to $US210." He said a closer look with more components detailed, or an actual teardown of the device, would narrow the cost range.

Rassweiler noted that the Galaxy Tab 7.7 has an LTE module, and if the Nexus 7 does not, that would reduce its cost by at least $US40. Also, the Galaxy Tab has a Super Amoled screen, which costs $US120 alone. By contrast, the Nexus 7 is expected to have a different, less-expensive display technology. Rassweiler set an estimated $US70 to $US80 cost for its display.

The Nexus 7's 8GB of NAND flash storage would cost around $10, compared with $18 for the Tab's 16GB, Rassweiler said. (The Nexus 7 is reportedly also coming in a 16GB version for $US249.)

In general, a tablet's three biggest costs are the screen, the memory and the processor. Together, those three component might make up 60% to 70% of a tablet's costs, said Jack Gold, an analyst at J. Gold Associates. A tablet's processor could cost $US25 to $US50, he said.

The Nexus 7 is also expected to have 1GB of RAM, but Gold said "that's not enough" for good performance, even with a high-end Nvidia Tegra 3 processor.

Nvidia has said its Kai reference design reduces the need for lots of memory to provide adequate performance, and some observers have said the Nexus 7 will have the Kai design.

Gold said there are plenty of examples of low-priced tablets on the market, but questioned whether Google can really achieve great sales with a low-cost, low-priced tablet.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed. His email address is mhamblen@computerworld.com.

See more by Matt Hamblen on Computerworld.com.

Read more about mobile and wireless in Computerworld's Mobile and Wireless Topic Center.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Hamblen

Computerworld (US)
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?