Google reportedly planning to launch $99 Nexus 7 by end of 2012

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  • Reply 81 of 136

    Quote:

    Originally Posted by pt123 View Post


    If they lose money on each unit, won't volume (selling more) mean bigger lost?



     


    I believe he was being sarcastic.

  • Reply 82 of 136

    Quote:

    Originally Posted by Quadra 610 View Post


     


    Most of that stuff isn't. Especially when it comes to tablets. 


     


    By whoring out their OS to everyone, and thereby relinquishing control of their OS at a critical stage, Google shows that they, also, don't think Android's worth a damn, either.


     


    This is why a "stale" OS with a "just a grid of icons" not only remains the dominant mobile OS worldwide (not limited to smartphones), but also why it dominates in consumer satisfaction, often by very wide margins. 


     


    You're not getting too far around here, are you.



     


    You don't like being challenged, do you? What makes you think Android is a "stale" OS with just a "grid of icons"? It's an open-source project, you can use it for whatever you desire. I don't agree with reskinning and heavily modding it for purposes of Sense, TouchWiz or even the Kindle Fire, but I'm not those companies, and I can choose what I want--so I choose a Nexus device.


     


    You, like Skil, seem to be offended by anything non-Apple. Why is that? What makes you want to defend Apple to the death (regardless of point or topic), and vehemently hate anything non-Apple?


     


    See, I like Android because it's open. The world I want to live in has a platform for smartphones and tablets like it does for PCs, where there is a standardized firmware spec that allows you to install the OS of your choosing. I don't believe hardware should be sent to the landfill because the manufacturer doesn't provide you an update. If you have a Nexus S and don't like it, you should be able to install Windows Phone 7 or 8, or similarly, iOS. If you're unsatisfied with iOS on your iPhone 3G, you should be able to install Android Gingerbread, ICS, or Jelly Bean and try them. 


     


    I don't claim Google is perfect and have demonstrated that. 


     


    Why are you so unflinchingly pro-Apple and anti-everything else?

  • Reply 83 of 136

    Quote:

    Originally Posted by drobforever View Post


     


    You're really making this up. $150-$200 to break even is a myth. Like I said, the parts cost at most $50 for a dual-core 8GB tablet. All those "R&D, ....." costs, really is nothing, because, when you're going for a $99 retail price tablet, you'll definitely sell in 10s of millions, so the average cost on those you mentioned would be spread and will be pretty low per device. Plus, e.g. marketing cost will be very low because, just the fact you're selling such device will create a lot of buzz and that's self-marketing.


     


    You can say it'll be a low quality device and you won't buy it even if it's free, that's fine, some people here will think that way and they're free to make their choices. But I'm talking about profitability, not quality, you want quality device you go buy higher-priced devices. $99 device, consumer will have lower expectations and they'll be ok with e.g. cheap shell or lower battery life (I still expect 7-8 hours because it's ez to do for 7").



    1) R&D... Have you done R&D?  while it amortizes out, it's there, and it also needs to feed 'the next round' of R&D.  pretty low is probably <$5 a device for the first year, but people have to be funded and fed, and that's this years budget.


     


    $99 Retail usually means 30% to channel costs.  Best buy/Staples/Target don't work for free.  Google doesn't have a store, right?  Oh, and you think Amazon is going to sell this for a lower cut?  hardly.


     


     


    2) no marketing?  how will you know where to buy the thing?  Where is this google store... is it next to walmart?  What carriers will sell it... oh, none.  If anything, Marketing will be higher as you don't have a hook to sell it and you will definitely need to continually present it as a Kindle/Nook/iPad option.     this isn't kickstarter;-)  We're in it to win it, and therefore it has to have mindshare before you get marketshare.   


     


    3) I forgot Licensing... android isn't free.  you need to budget $10 for Microsoft royalties, at least.


     


    4) I didn't say it was low quality.  you did (you used the term 'cheap').  I never said people won't buy it (others on the thread did).  and I'm talking about profitability.  If a consumer has lower expectations, then they will use it less (it's not strategic), and google's model is to pay for it via 'use'  If I break it dropping it on the floor, is that 'acceptable'?  (cheap shell), cost of returns?     7" is 'easy' to maintain a 7 hour battery for surfing all the time over wifi? (remember, use is what pays for it, not reading books from storage).


     


    5) interesting you didn't touch the fixed unit costs (assembly/labor,shipping, packaging, taxes)  That's at least 10 bucks ($5 to assemble, $1 ship, $1 packaging, and if you plan on making a profit, lets say 20% across all nations on that... so if you make $10 profit, that's $2 tax).


     


     


    6) My read on people with a $99 'expectation'  They expect to be as good as a Kindle.   If it fails that, it's a negative brand experience and it will never be bought again.... at any price, except by techies (0.00001% of the market).


     


     


     


    And on Profitability...With your numbers:  You go to Best buy, who sells at $99, who take 30% for their time and effort ($29), which means Google will make $1 (50 for parts, 10 for license, 9 for Marketing, taxes, shipping, assembly, QA, loss, insurance, supply chain management)  unit.  at 50Million units a year (the best selling android tablet ever!) , that 50Million profit, on 3.5Billion on cost (assuming your $70).  


     


    You get the same eyeballs (or less, these are the low surfers), so net net, you're not winning anything here.  So... you're Sergey... you just committed 3.5Billion of your company's money, or 25% of last years profits for  1.6% ROI.  Great, except Google is currently making 25% Net (after tax) Profits.  That's hardly good return on investment... using YOUR numbers.    I think you need to revisit your profitability model.

  • Reply 84 of 136


    I realize it is a store demo unit. Staples, if it had any interest in actually selling the Nexus 7 should replace the damaged unit so the customer cannot see how easy it is to damage by jerking the USB connection. I don't believe that this is a store issue it is a design issue. The USB connector is constructed such that jerking the cable will bend the USB mount. The flexible plastic back is not strong enough to hold the connector in place.

  • Reply 85 of 136

    Quote:

    Originally Posted by Shidell View Post

    Google won't put the Nexus brand on a poor product


     


    Quote:

    Originally Posted by Shidell View Post

    the Nexus branding means it passes Google's standards and runs stock Android, receiving updates directly from them, and is easily modded. That appeals to anyone. Cheap tablets of poor quality run Android and provide a terrible user experience--a cheap tablet that provides a high user experience with the stock Android OS is a win for consumers and surely will sell well.


     


    First, I'd say I generally like Apple's offerings more than Google's, but I'm not tied to any one brand/ecosystem.


     


    The Nexus brand means nothing to me anymore due to bad user experience. I waited and bought a Galaxy Nexus because it was a "Nexus", with all of the promises from Google. Google announces Jelly Bean saying it's available immediately, and I don't get it for months. Why? Because my Canadian build is 'special' with different firmware so it gets updated by Samsung. When was that part of being a Nexus product? Was I supposed to get down to that level of detail when I bought the phone? I'd be even more disappointed if I was a non-Nexus user and wouldn't know when (of if!) I'd get a Jelly Bean update. Month's later, the excitement of a new OS was almost dead until I finally got it. I say it is a great update, I like it a lot, but the experience was just horrible. Don't expect me to root it so I can get the updates myself, that's not what was promised to me as a "Nexus" product.

  • Reply 86 of 136


    The good ole' Android way.


     


    If you cant beat 'em.. then give them away for free.  Or for 99cents.  Or buy1get1free.


     


     


     


    Any questions about how they reach 1 million activations a day?

  • Reply 87 of 136

    Quote:

    Originally Posted by pt123 View Post


    If they lose money on each unit, won't volume (selling more) mean bigger lost?



    WHOOOSH!

  • Reply 88 of 136

    Quote:

    Originally Posted by nht View Post


     


    You DO know there are android forums right?


     


    And Android isn't open.  In order to ship an AndroidTM product you need Google's blessing.  If you fork android and ship a product you can pretty much figure on getting booted from the OHA and won't be able to ship any more AndroidTM products.


     


    But I digress, here let me provide you a link: http://bit.ly/Q4v8Zq



     


    You are right. Android is "open", to use their applications (e.g. "Google Play"), you need their certification. Anyone can take Android and do what they please with it--shoddy tablets included.


     


    As for Android forums, yeah, there are. Sadly, at Android forums, it's the reverse of what we find here: Die-hard fanatics calling iOS and Windows Phone garbage, worthless, etc. I don't subscribe to that mindset, there are positives and negatives to every platform, and I wish people could more openly discuss and debate them. People are polarized, it's like politics, religion, racism--as a race we seem to have a hard time keeping an open mind.


     


    I stick around here to challenge people stuck in their ways and refusing to accept arguments that are unsubstantial. "Android is garbage" is an example of such.

  • Reply 89 of 136

    Quote:

    Originally Posted by nht View Post


     


    You DO know there are android forums right?


     


    And Android isn't open.  In order to ship an AndroidTM product you need Google's blessing.  If you fork android and ship a product you can pretty much figure on getting booted from the OHA and won't be able to ship any more AndroidTM products.


     


    But I digress, here let me provide you a link: http://bit.ly/Q4v8Zq



    Not only it isn't open but there are royalties to pay on the nonOpen IP.  Microsoft makes what $10-15 per Android license?  ASUS or Google has to pay that now.

  • Reply 90 of 136

    Quote:

    Originally Posted by iVlad View Post


    Domination. Google wants to control their devices and what's shown on them. This will be a perfect way to get as many out there and show ads everywhere possible.



     


    Google is not going to "dominate" the iPad the way Android does in the phone space (if by "domination" you mean marketshare.)  Either this tablet is going to be a piece of crap or Google will have to plaster it with ads (or both).  For a hundred bucks more everyone who can will get an iPad.  The consumers with money to spend (the ones advertisers want) aren't going to touch this garbage.  And Android's supposed advantage over the iPhone - choice - will be erased because Google will drive all their hardware partners out of business.  So it will be just like Apple (no choice), but with a business model that makes everybody a whole lot less money.  

  • Reply 91 of 136

    Quote:

    Originally Posted by BCS1604 View Post


    I realize it is a store demo unit. Staples, if it had any interest in actually selling the Nexus 7 should replace the damaged unit so the customer cannot see how easy it is to damage by jerking the USB connection. I don't believe that this is a store issue it is a design issue. The USB connector is constructed such that jerking the cable will bend the USB mount. The flexible plastic back is not strong enough to hold the connector in place.



     


    You're right, they should, but most stores don't. Show floor units get abused regularly, it's probably not possible to keep up with the damage customers inflict. 


     


    I'd encourage you to do additional research on the build quality, and perhaps even stop back at the Staples and investigate the port yourself. Everything I've read seems to indicate a very high build quality, but I don't own one (nor have I held one), so that's all I have to go on.

  • Reply 92 of 136
    cpsrocpsro Posts: 3,198member


    I'd pay $99 to avoid Gooples privacy invading tactics... and to not reward Goople for aiding and abetting in the theft of Apple intellectual property and profiting from said tactics.


    Too bad Goople doesn't have the balls to put its own brand on Android hardware. I'd really like to see Apple issue them a right smack down for copying instead of being innovative.

  • Reply 93 of 136
    jragostajragosta Posts: 10,473member
    shidell wrote: »
    You, like Skil, seem to be offended by anything non-Apple. Why is that? What makes you want to defend Apple to the death (regardless of point or topic), and vehemently hate anything non-Apple?

    Maybe they're just trying to make up for all the paid shills who come here and put down anything simply because it's from Apple?
    pt123 wrote: »
    If they lose money on each unit, won't volume (selling more) mean bigger lost?

    That's a reference to an old joke - "we lose money on each one, but will make it up in volume". The earliest reference I remember is an old 'I Love Lucy' show where they were making salad dressing and losing money on every batch and Lucy said they'd make it up in volume. I'm sure the gag is much older than that, though.

    You're really making this up. $150-$200 to break even is a myth. Like I said, the parts cost at most $50 for a dual-core 8GB tablet.

    Feel free to show us your numbers - or your credentials to make such a claim. Or, alternatively, start with the bill of materials for the latest iPad and show how much you can save on each component by going to a crappier product.

    Then, add in all the other costs that don't show in the BOM. Labor. Plant space. Utilities. Shipping costs for incoming materials. Packaging. Quality costs.

    Then allow enough margin to cover R&D and overhead and still produce a profit.

    Then show us exactly what type of product you can make and sell profitably for $99. I can guarantee it's not going to be a very good product.
    All those "R&D, ....." costs, really is nothing, because, when you're going for a $99 retail price tablet, you'll definitely sell in 10s of millions, so the average cost on those you mentioned would be spread and will be pretty low per device. Plus, e.g. marketing cost will be very low because, just the fact you're selling such device will create a lot of buzz and that's self-marketing.

    And that's exactly why your opinion about costs is worthless. Those are all real costs that must be considered, along with all the other costs I've provided above. Oh, and keep in mind that the only way to reduce marketing costs that much is to sell through distributors - who are going to generally want at least 20% of the price of the product (often much more). So, at most, you really only have $80 to work with if you go with your plan.
  • Reply 94 of 136

    Quote:

    Originally Posted by OriginalG View Post


     


     


    First, I'd say I generally like Apple's offerings more than Google's, but I'm not tied to any one brand/ecosystem.


     


    The Nexus brand means nothing to me anymore due to bad user experience. I waited and bought a Galaxy Nexus because it was a "Nexus", with all of the promises from Google. Google announces Jelly Bean saying it's available immediately, and I don't get it for months. Why? Because my Canadian build is 'special' with different firmware so it gets updated by Samsung. When was that part of being a Nexus product? Was I supposed to get down to that level of detail when I bought the phone? I'd be even more disappointed if I was a non-Nexus user and wouldn't know when (of if!) I'd get a Jelly Bean update. Month's later, the excitement of a new OS was almost dead until I finally got it. I say it is a great update, I like it a lot, but the experience was just horrible. Don't expect me to root it so I can get the updates myself, that's not what was promised to me as a "Nexus" product.



     


    I agree. I think the update process sucks, and could definitely get better. Waiting for OS updates is painful.


     


    I think part of the reason the process hurts so much is because even with Nexus devices, carriers force Google to meet their standards testing--whereas I believe Apple's clout allows them to control the process, carriers be damned. If Google can get past that, we may see updates in a more timely fashion.


     


    Ultimately, I want to see a paradigm shift where you can install the OS of your choosing on your phone (and why shouldn't you? Dual core/quad core 1 Ghz+ devices with 1 Gb+ of RAM), so that when an OS is released you can update just as you would with OS X, Windows, etc. Ideally, you could install the OS of your choice: Android; Windows Phone, iOS, etc. That might seem idealist, but that's where I want (and think) it's heading. Hardware outpaces software so greatly that continual even new OSes run well on older hardware, as long as drivers are available.

  • Reply 95 of 136

    Quote:

    Originally Posted by jragosta View Post





    Maybe they're just trying to make up for all the paid shills who come here and put down anything simply because it's from Apple?


     


    l guess, but it's not asking too much for them to be critical and fair, is it? I'll contest comments, but it's not as if I believe Google is infalliable and Apple/iOS is garbage, which is the projection some members make.

  • Reply 96 of 136
    slurpyslurpy Posts: 5,384member


    I don't get it. I own a Nexus 7, right now I regret the decision to buy it as I always prefer using my iPad, but it's a decent device for some things. It cost $249. I don't see how the hell Google can release a $99 version without massively sacrificing quality. The current one feels cheap as it is. Anyway, Apple doesn't need to and shouldn't compete in this space. Google has a different business model, which is spamming everyone with their OS to sell ads, them and Amazon can battle-it out for the ultra-cheap subsidized tablets. 

  • Reply 97 of 136


    Feels pretty could actually.


     


    In fact, Android is worth a damn, in the full sense of the word.

  • Reply 98 of 136

    Quote:

    Originally Posted by Shidell View Post


     


    You don't like being challenged, do you? What makes you think Android is a "stale" OS with just a "grid of icons"?



     


    I was referring to iOS. 

  • Reply 99 of 136

    Quote:

    Originally Posted by Shidell View Post


     


     


     


    Ultimately, I want to see a paradigm shift where you can install the OS of your choosing on your phone (and why shouldn't you? 



     


     


    This is the absolute worst thing from a User Experience perspective. 


     


    There's a reason iOS mated to iPhones leads in consumer satisfaction: Apple provides a tightly-controlled, end-to-end solution. 

  • Reply 100 of 136
    pt123pt123 Posts: 696member

    Quote:

    Originally Posted by Shidell View Post



    You, like Skil, seem to be offended by anything non-Apple. Why is that? What makes you want to defend Apple to the death (regardless of point or topic), and vehemently hate anything non-Apple?


    Because being so pro Apple and anti everything non Apple, you become Apple and you are a winner :-)

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