Tablet Wars - Which One Generates More Profits?

A different way to see how the devices fulfill their mission for companies is to review the level of profits, and for that you have to know how much it costs to manufacture a device and the relationship between price and sales.

In the middle of the tablet war We will look at how much it costs each of the top three developers to build their tablet and how much it sells and the number of devices sold or expected sales by the end of 2012.

Nexus 7, the key to Google's model

The tablet Nexus 7 to assemble it costs, according to the IHS analysis, $ 152. That is why its price is so cheap, with 199 dollars in its cheapest version and 299 in its largest version. Profits range from $ 50 to $ 100 and sales are already in the thousands.

The Google Nexus 7 is designed to make the most of Google cloud services, such as Google Drive and Google Music, making it an affordable and versatile device.

The Ancient King, iPad

The production cost of the Apple tablet ranges from $ 316 to $ 408 depending on the model. The cheapest price of the tablet is 500 dollars so the profit is less than 200 dollars. With the most expensive version, which includes WiFi and 4G as well as 64 GB, the profit amounts to up to 300 dollars.

Microsoft Surface, the new contender

Finally there is the Microsoft tablet, whose production cost is approximately 275 dollars. And its price? Well, here Microsoft shows that it hasn't exactly been the first in IT business for a long time based on friendly policies, but on high-quality devices and extremely high prices. The Microsoft Surface costs $ 700, so each device sold generates almost $ 400 in profit.

What are the differences?

Mainly the audience that each device points to. While Microsoft and Apple They compete in the range of prices and features, Google stands out and aims for a massive device, while the other two companies aim for luxury devices, with great quality and high prices.

What sales strategy do you think is the most appropriate in this peculiar moment of the tablet industry?

More information - EA bets heavily on the Google Nexus
Link – AndroidAuthority


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  1.   osnola said

    Let's face it… We can't say that the iPad is the old king. Whether we like it or not, he is the one who dominates the tablet market.