Featured Articles

Apple iPad Air 2 costs $275 to build

Apple iPad Air 2 costs $275 to build

IHS has told Recode that the Apple iPad Air 2 16GB Wifi costs only $275 to build -- not bad…

More...
LG sells 16.8 million smartphones in Q3 14

LG sells 16.8 million smartphones in Q3 14

As Samsung is losing market share, another Korean company, which many had written off, is gaining.

More...
LG G Watch R EU price set at €299

LG G Watch R EU price set at €299

LG G Watch R is probably the best looking Android Wear device on the market and many have been waiting for…

More...
Nvidia GTX 970 SLI tested

Nvidia GTX 970 SLI tested

Nvidia recently released two new graphics cards based on its latest Maxwell GPU architecture, with exceptional performance-per-watt. The Geforce GTX 970…

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Friday, 29 June 2012 09:53

Google wants 14 bucks for Nexus 7 shipping

Written by Fuad Abazovic



Here is your margin


Google is making profits somewhere where you don’t really expect it. Last night we tried to order a Nexus 7 in the US to ship to a California and Google Play wanted to charge us 14 USD for second-day shipping.

The SA is a big country but again 14 USD is almost seven percent of the $199 tablet price. In reality if you ship hundreds of thousands if not millions you have to pay way less to the shipping company to have this stuff delivered. Our industry friends who are shipping tens of thousands of packages are paying only a few dollars for second-day shipping, which kind of puts things in perspective.

This is where the money gets made silently and even if Nexus 7 ends up in California or just about any other state, you will have to pay the state sale tax that currently in California varies between 7.25 and 9.75 percent, ending with roughly the same or slightly higher price.

Nvidia’s $199 Kai platform has to overcome margin issues at that price, so as you can imagine despite the previous reports, Google will make some money. As an end user you should not care that much, but analysts will definitely want to dig a bit deeper and find out the exact figures.

Still, at $199+$14 ($213) or $249+$14 ($263) the Nexus 7 it’s still probably the best 7-inch tablet that money can buy.

blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments