INTERNET ADVERTISING BROKER Google has admitted that there's no margin on the Google Nexus 7, saying that it hopes to make money from Google Play instead.
Google shocked us last night when we realised that its first own-branded tablet will retail for just £159 in the UK, as it aims to challenge the likes of the Amazon Kindle Fire. The firm has now admitted that it's making no money on the tablet due to this low price, aiming to make its fortune on app revenues instead.
As quoted by Allthingsd, Google's Android chief Andy Rubin said, "When it gets sold through the Play store, there's no margin. It just basically gets (sold) through."
According to Asus chairman Jonney Shih, keeping the price of the tablet so low was a pretty hard task for engineers, especially as Google gave the team just four months to build it.
He said, "Our engineers told me it is like torture. [Google] ask a lot. We went from zero to working product in four months."
The Nexus 7 might have been difficult to design and build, but Rubin thinks that Google's ecosystem consisting of TV shows, apps, movies and magazines, will be the selling point of the dirt-cheap tablet.
Speaking about why Android tablets haven't been flying off the shelves in the past, Rubin said, "I think that was the missing piece."
The Google Nexus 7, which was unwrapped at Google's I/O Conference on Wednesday, will go on sale in the UK in mid-July. µ
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