Originally Posted by WoodDraw
But you have two massive companies selling tablets at cost already. What more can you do?
I bought a Nexus 7, and I got $25 free to spend with Google along with it. Hardware isn't important; it's all about the ecosystem. Google wants you invested in gmail, youtube, drive, chrome, play, etc. Do you think Google has made any money on me yet?
I mean they probably have, because I'm a long time user of their services. But they certainly haven't on the Nexus yet.
It's also a bit naive to think white manufactures have much influence over prices. You have two disruptive companies right now - ASUS and Amazon. And the first comes with Google's help; their flagships are still priced accordingly.
ok, we are talking about two totally different things here. I am talking about driving down cost of manufacturing. As you see more and more white box sales, it becomes cheaper and cheaper to manufacture various components. So if Google sells a Nexus at cost right now for $200... soon they can sell at cost for $175 then $150...
White box manufacturing helps drive down the cost of MAKING the tablets... while also creating pressure to sell at low prices. Yes, the Nexus isn't going to drop in price unless the manufacturing cost drops.. which is exactly what increased white box production does. Along the way, it helps make sure some idiot company like Motorola thinks twice before releasing a $600 tablet again.