Don’t expect Google’s new Nexus 7 tablet to help the company’s profit margins.
Andy Rubin, Google’s head of mobile, told AllThingsD that the new tablet is basically being sold at cost through Google’s online store.
“There’s no margin,” he said in the interview. “It just basically gets (sold) through.”
In fact, Rubin says the company is eating the marketing costs for the device.
This allows Google to keep the price tag at $199, so it won’t price itself out of competing with other cheaper tablets like the Kindle Fire. And just like with the Kindle Fire, sales of the new Nexus 7 tablet could potentially drive sales of other Google products like e-books and apps.