Published in News
New teardown puts Nexus 7 8GB at US $151.75
The 16GB one at US $159.25
A new teardown by IHS iSuppli is putting the the Nexus 7 BOM (bill-of-materials) much lower than a previous teardown by TechInsights. According to the new figures, the Nexus 7 allows for a decent margin for Google, especially for the 16GB version.
According to IHS iSuppli the total BOM cost for the Nexus 7 8GB ends up at US $151.75 while the 16GB one ends up at US $159.25. The only difference between the two models is an additional 8GB of NAND storage, which costs about US $7.50, in line with our previous guesstimates.
Considering the US $199 and US $249 retail price for the 8 and 16GB version, this adds up to a decent margin of around US $15 and US $42.50 for the 8 and 16GB version. This does not come as a surprise since most manufacturers are doing the same thing and although NAND flash memory is cheap as peanuts, the price premium for additional storage has always been incredibly high. Thank Apple for this "innovation."
Of course, the Nexus 7 with its US $199 and US $249 still offers great value and is certainly a great deal if your are looking for a 7-inch tablet.