Taiwan’s Digitimes also reports today that Google will release a 7-inch tablet manufactured by Asustek in the May-June timeframe at a $199 price point. All that means is that other tablet makers will have to lower prices and nobody will make money. Except Apple.
According to Digitimes, PC tablet profit margins run at about 10%-15%. Many observers believe Amazon is losing money on every Kindle Fire it sells. If that’s the case, Google is likely to lose even more money on a lower priced tablet. That’s not a business model with legs.
Paul Ausick
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