Google Nexus 7 Set for September European Launch at 200 Euros—Is Google Selling at a Loss?
The Google Nexus 7 seems to be a huge success even before its official release. The tablet is currently only available for pre-order in the USA and is expected to be shipped from mid-July. However, reviews from bloggers and tech sites that have already had test devices in hand are consistently positive.
Details about the European launch were previously unknown, but the Italian branch of Asus let some information slip on their Facebook page. The 16GB version of the Nexus 7 is expected to be available for 250 euros starting in September. The 8GB version will likely be sold for around 200 euros.
In response to an inquiry from Golem.de, Google Germany confirmed the sale price of the 16GB model, but they didn’t want to or couldn’t comment on the release date yet. However, we probably won’t have to wait too long, as the competition in the 7-inch tablet market is still so scarce in this country that one could secure a massive piece of the market if timed correctly. Amazon has already achieved this in the USA with the Kindle Fire, which is likely one reason why Google decided to develop its own tablet in the same size.
In any case, the Kindle Fire launch in Europe seems to be just around the corner, as the Amazon Appstore is expected to be made accessible in Europe by summer. Thus, there will likely be a race between the two US companies for the German-speaking market, and with a September launch, one might already welcome the second generation of the Kindle Fire. Rumor has it that the successor model of the current Amazon tablet is set to launch in August.
As was the case with the US launch of the Kindle Fire, rumors are now circulating that Google might incur a loss selling the Nexus 7. According to TechInsights, the parts alone for the device already cost 184 US dollars, leaving only a 15-dollar margin from the sale price. This sum does not yet include the costs for distribution, packaging, and assembly. Of course, one can only speculate on what costs Google ultimately bears and what deals the search giant and Asus (the tablet’s manufacturer) have made, but it seems Google is determined not to lose the tablet market (especially not to Amazon) and has possibly factored in a loss on sales of the device.
With the potential launch in Germany this September, the tedious import of the Nexus 7 can almost be avoided, as a US order including shipping to Europe likely wouldn’t arrive before mid-August anyway. So it’s best to sit back and have a cup of tea.
