Nexus 7 demand crushes expectations, 16GB model sells out
It seems that Google (GOOG) could turn a profit on its Nexus 7 tablet after all. The Guardian reports that the company has stopped taking orders on the 16GB version of its tablet on its Google Play store, while unnamed sources told the paper that Google had “seriously underestimated” the demand for the more expensive 16GB Nexus 7.
The Nexus 7 Google Play page for Google’s bigger tablet now says that users can sign up to be notified when more models become available, so it appears that Google is ramping up production as soon as it can. The fact that the 16GB model has been selling well should be good news for Google since the $249 version of the Nexus 7 is projected to be far more profitable for the company than the $199 8GB model.
Google’s profit on every Nexus 7 tablet sold: $0
Google unveiled its first own-brand tablet on Wednesday, and it may end up forcing Android tablet vendors to make big changes to their strategies. The new Android tablet is sleek and its price tag is attractive, but Google Android boss Andy Rubin confirmed one thing the tablet is not to All Things D on Wednesday: a profit maker.
Just as we suggested in a feature on the Nexus 7 published on Wednesday, Google will not make any money on hardware sales. Instead, the Internet giant will look to make money by promoting content sales through its Google Play marketplace, which will offer movies, music and more to Nexus 7 users, and through advertising.
“When it gets sold through the Play store,” Rubin told All Things D. “There’s no margin, it just basically gets [sold] through.”Rubin also confirmed that Google is absorbing all marketing costs surrounding the new Nexus 7, which could end up resulting in a net loss per unit sold depending on Google’s marketing and advertising budgets.When Rubin was asked if he thought this strategy would apply pressure to Google’s Android partners, his only reply was that “there is plenty of room left for Android tablet innovation,” All Things D wrote.
It seems that Google (GOOG) could turn a profit on its Nexus 7 tablet after all. The Guardian reports that the company has stopped taking orders on the 16GB version of its tablet on its Google Play store, while unnamed sources told the paper that Google had “seriously underestimated” the demand for the more expensive 16GB Nexus 7.
The Nexus 7 Google Play page for Google’s bigger tablet now says that users can sign up to be notified when more models become available, so it appears that Google is ramping up production as soon as it can. The fact that the 16GB model has been selling well should be good news for Google since the $249 version of the Nexus 7 is projected to be far more profitable for the company than the $199 8GB model.
Google’s profit on every Nexus 7 tablet sold: $0
Google unveiled its first own-brand tablet on Wednesday, and it may end up forcing Android tablet vendors to make big changes to their strategies. The new Android tablet is sleek and its price tag is attractive, but Google Android boss Andy Rubin confirmed one thing the tablet is not to All Things D on Wednesday: a profit maker.
Just as we suggested in a feature on the Nexus 7 published on Wednesday, Google will not make any money on hardware sales. Instead, the Internet giant will look to make money by promoting content sales through its Google Play marketplace, which will offer movies, music and more to Nexus 7 users, and through advertising.
“When it gets sold through the Play store,” Rubin told All Things D. “There’s no margin, it just basically gets [sold] through.”Rubin also confirmed that Google is absorbing all marketing costs surrounding the new Nexus 7, which could end up resulting in a net loss per unit sold depending on Google’s marketing and advertising budgets.When Rubin was asked if he thought this strategy would apply pressure to Google’s Android partners, his only reply was that “there is plenty of room left for Android tablet innovation,” All Things D wrote.
No comments:
Post a Comment