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You were all supposed to look at the pricing etc of iPhone and prepare a similar one for

a phone available in the market. You can even do it for any other product like shoes,

jackets/suits, motorbikes etc.

Preliminary Tread down cost analysis of Google nexus 7

The entry-level 8-Gigabyte (GByte) version of Googles new Nexus 7 media tablet carries a bill of

materials (BOM) of $151.75, according to preliminary findings from the IHS iSuppli Teardown Analysis

Service. When manufacturing expenses are added, the cost increases to $159.25. The high-end model with

16 GBytes of NAND flash memory has a $159.25 BOM, for a total cost of $166.75.

Below Table presents the preliminary results of the dissection of the Nexus 7, along with a

comparison to Amazons Kindle Fire. Please note that these teardown assessments are preliminary in

nature, account only for hardware and manufacturing costs and do not include additional expenses such as

software, licensing, royalties or other expenditures.

Preliminary Tread down cost analysis of Google nexus 7 as on July 2012

Cost pricing in USD

Nexus 7 (Asus)

Sr.No. Component / Hard Ware Element 8GByte 16GByte

1 Retail pricing $199.00 $249.00

2 Total BOM cost $151.75 $159.25

3 Manufacturing Cost $7.50 $7.504 BOM + Manufacturing $159.25 $166.75

Major Cost Drives

7 Memory $13.50 $21.00

Display & Touch Screen

Display $38.00 $38.00

Touch Screen $24.00 $24.00

Processor $21.00 $21.00

Camera $2.50 $2.50

Wireless Section-BB/RF/PA (module) NA NA

User Interface & sensors & Combo module (WLAN/BT/FN) $11.00 $11.00

Power Management $5.50 $5.50

Battery $12.75 $12.75

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Mechanical / Electro-Mechanical / Other $20.00 $20.00

Box Contents $3.50 $3.50

Source: HIS isupplil july 2012

When additional costs are considered, IHS estimates that Google will at least break even on sales of the

8GByte model, priced at $199and will make a modest profit on the 16Gbyte version, which is priced at

$249.

Like Apple, Google has realized it can boost margins by offering more memory at a more profitable price

point. Google is charging $50 more at retail for only $7.50 in additional memory cost at the BOM level.

This adds $42.50 to Googles bottom line on each sale of the high-end model.

Googles Nexus 7 represents less of an attempt to compete with Apple Inc.s market-leading iPad, and

more of a bid to battle with AmazonsKindle Fire, said Andrew Rassweiler, senior director, teardown

services for IHS. The two platforms are similar in many regards, including the use of the 7-inch display,the eschewing of 4G wireless connections in favor of Wi-Fi, support for virtually identical battery lives

and the same pricing for the entry-level models. However, the Nexus 7 has superior specifications to the

Kindle Fire, giving it a more attractive feature set that may make it more desirable to consumers.

The Nexus 7 distinguishes itself from the Kindle Fire with its higher-resolution display using in-plane

switching (IPS) technology. Googles tablet also employs a quad-core Tegra 3 processor from Nvidia

Corp.,compared to the Kindle Fires OMAP 4430 dual-core processor from Texas Instruments Inc. The

Nexus 7 also includes a camera and sports a near-field communications (NFC) chip for wireless

commerceboth features absent on the Kindle Fire.

These additional features give the 8GByte Nexus 7 a BOM that is $18 higher than the current cost for the

Kindle Fire. IHS now estimates the BOM of the Kindle Fire has fallen to $133.80, down from $191.65 at

its introduction in November, due to dramatic reductions in component pricing. These considerable cost

reductions provide a breather for Amazon in terms of the subsidy it initially paid to penetrate the market.

The component suppliers in the Nexus 7 offered few big surprises, with almost all the parts having been

detected in other media tablets by the IHS iSuppli Teardown Analysis Service.

However, one novel part is the combination gyroscope/accelerometer from InvenSense Inc.

Although we have seen a lot of InvenSense gyroscopes, we have seen only one other combo devicea

part from STMicroelectronics in the Samsung Galaxy SIII. Furthermore, the InvenSense part integrates

onboard processing, a newer feature for MEMS sensors, indicated Rassweiler.