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Google May Be Selling Nexus 7 At a Loss

While there may have been nothing surprising about the Google Nexus 7 itself, considering that it may have been one of the worst kept launch secrets, it was surprising to hear that Google may not really be profiting off the Nexus, since the company was apparently selling the Nexus at cost.

Now, a UBM Tech Insight analysis shows that Google actually might be selling the Nexus at a loss. The analysis puts the production cost of a Nexus at around $184, which is just $15 short of the $199 charged for the 8GB model. That doesn't count all the other factors that go into the Nexus launch, including packing, distribution, and marketing.

If you factor in the $25 Google Play voucher that Google is throwing at you, it sure doesn't look like they're making much of a profit.

Still, these figures might not be completely accurate. Who knows what manufacturing deals Google's worked out with ASUS? Even then, it looks like there's plenty of motivation for Google to want to push for customers to opt for the larger, 16 GB model.