Andy Rubin, Google's head of mobile, says Google is selling its new tablet "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. Like Amazon, at least for the moment, the device is seen as a platform for creating revenue streams other ways.
But that, in general, is probably the way Google approaches its entire set of efforts in consumer electronics: creating products that drive usage and then revenue from the software and content products it creates.
That is more the "Amazon" strategy than the "Apple" strategy.
Thursday, June 28, 2012
Google Isn't Making Any Profit From Sales Of The New Nexus 7 Tablet
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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