Thursday 28 June 2012

Google Will Make No Profit On Each Nexus 7 Sold    [ 28-06-2012 16:53 ]

Author: Irina Turina   Source: BGR     Translation by:     

Google's Nexus 7 tablet, unveiled on Wednesday, may herald Google's first foray into the own-brand tablet space, but it won't be making Google any money, not directly anyway. Speaking with AllThingsD Andy Rubin, Android's head honcho, confirmed that the new tablet will not make Google any money from sales of the hardware itself. Instead Google will be looking to make its money through selling content via Google Play, which offers films, music and so on. Advertising, ever the staple at Google, will also be drawing in the dollars. It's actually a bigger hit for Google than just losing out on hardware profits because Google will be soaking up the marketing costs for the new device too. That means that each Nexus 7 sold might even end up meaning that Google is making a net loss. Now Google can afford to do that, but what affect will that have upon other Android tablet manufacturers? Rubin's reply was vague to say the least "... there is plenty of room left for Android tablet innovation".

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