According to analyst Thompson Wu of Credit Suisse, ASUS are using the close partnership with Google and their recently-announced Nexus 7 tablet to enhance their brand rather than just the desire to make money.
Production cost is said to be roughly $200, and the Nexus 7 sell for $199.99, meaning ASUS are breaking even on every tablet sold. Usual OEM business methodology would be vastly different, but ASUS are looking to build their brand in a system where OEM's "have limited opportunities to differentiate" from the brands ASUS are making hardware for.
We believe Asustek realizes that in a market where OEMs have limited opportunity to differentiate without content and operating systems, it's demonstrating its edge via research and development and innovation, while building upon its brand value.
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