In general, a tablet's three biggest costs are the screen, the memory and the processor. Together, those three component might make up 60% to 70% of a tablet's costs, said Jack Gold, an analyst at J. Gold Associates. A tablet's processor could cost $25 to $50, he said.
The Nexus 7 is also expected to have 1GB of RAM, but Gold said "that's not enough" for good performance, even with a high-end Nvidia Tegra 3 processor.
Nvidia has said its Kai reference design reduces the need for lots of memory to provide adequate performance, and some observers have said the Nexus 7 will have the Kai design.
Gold said there are plenty of examples of low-priced tablets on the market, but questioned whether Google can really achieve great sales with a low-cost, low-priced tablet.
Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed. His email address is firstname.lastname@example.org.
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