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So how many Nexus 7 tablets did Google sell?

Earlier this morning when I was scanning through Google’s(s goog) third quarter 2012 earnings, I noticed that revenue in Google’s “Other” category came in at $666 million, versus $385 million in Q3 2011. It was such a substantial jump that I pinged a couple of Wall Street analysts, wondering if they could explain the jump.

Mark Mahaney, who follows Google for Citi Research, in an email said that the jump could be explained by the Nexus 7 sales. Mark thinks Google sold about a million units of their tablet (that is made by Asus) and that accounts for about $200 million in revenue. Ben Schachter of McQuarie Securities agrees and estimates that Nexus 7 sales accounted for probably $150 million to $200 million of the $281 million jump in other revenue.

Piper Jaffray’s Gene Muster estimates that Google sold between 800,000 to a million units, while Doug Anmuth of JP Morgan says Google sold about 700,000 units of Nexus 7 tablets. These numbers aren’t terribly surprising: The low-cost tablet “sets the standard for small slates” according to my collegue Kevin Tofel, who reviewed the device in July.

In 2011, Google had $1.37 billion in “other revenues.” These “other” include money Google rakes in from licensing, enterprise applications, and its various app stores. Now, we’ll have to add Nexus tablet revenues to the mix.

10 Responses to “So how many Nexus 7 tablets did Google sell?”

  1. Microsoft in six months will equal that number, Apple will equal that number 4 hours with the seven inch iPad. Google will be a distant number three in nine months.

    • I was going to say the same thing, but you beat me to it. How much PROFIT did they make from this product? Also, if the idea is to make money from the services such as media and apps, how much did they make from that? People are speculating whether Apple will meet the pricing of the Nexus or the Kindle Fire with their iPad mini/air, but why would they when these devices are sold at cost? I have to believe investors will demand more from Google on this when their other hardware venture Motorola is losing money.

    • petelehrman

      Amazon sells almost everything at zero cost. Is Amazon not impressive? It’s a 100B EV company – that’s impressive enough for me. Google isn’t a hardware company, they don’t aspire to make maximum profit off their devices. They want Android ubiquity so they can dominate mobile search — a very very profitable business.

  2. I’m pretty sure Google only books revenue on Nexus 7 tablets sold directly by them. Other retailers get their shipments from Asus, and I don’t think Google books any revenue for those… these analysts should probably clarify.