Google Tablet Analysis Points to Thin Margins

It’s not surprising that the first tablet to carry Google’s brand would attract attention from hardware analysts. Nor is one of their key conclusions much of a shock — the $199 price tag on the new Nexus 7 doesn’t leave Google much of a profit margin.

The Nexus 7 tablet costs $199 handheld computer and features a 7-inch screen. The research firm UBM TechInsights has come up with a $184 preliminary estimate for the costs of components in the Google tablet. That compares with its $153 estimate in November for the components inside Amazon.com’s identically priced Kindle Fire.

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