A previous look at the innards of the Nexus 7 by UBM Insights had claimed the unit would cost nearer $184 to produce. Google sells the 8GB version of the Nexus 7 Tablet for $199, with the 16GB model costing $249.
The search giant would be happier with the IHS iSuppli costing of the tablet's components as that would mean both models are priced at a point where they would not lose money.
iSuppli analyst Andrew Rassweiler claimed that Google will break even on the 8GB Nexus 7 after taking into account shipping, advertising and other costs, while the 16GB version would provide a healthy $42.50 profit.
"Like Apple, Google realises it can boost its profit margin by offering more memory at a stair-step price point. It is getting $50 more at retail for only $7.50 more in hardware cost, which sends $42.50 per unit straight to the bottom line," Rassweiler wrote.
The Nexus 7 runs the Android Jelly Bean 4.1 operating system and components include a Broadcom BCM4751 Integrated Monolithic GPS Receiver; InvenSense MPU-6050-Six-Axis MEMS Device; AzureWave AW-NH665 802.11n WiFi / Bluetooth/FM Radio module; and an NXP Semiconductor PN65 Secure NFC Module.
Google is also reportedly planning to release a 10in version of the tablet, most likely under the name Google Nexus 10.