When something goes into production it is usually cheaper to make lots and lots of them – the economies of scale come into play. So over the lifetime of the Nexus 7, should it be a success, ASUS will be able to make the devices for lower costs while the price to the end users may reduce at a slower rate.
So what you're saying is that despite being “@ cost” now, Asus is playing the long game and expecting to come out ahead over the lifetime of the product? If so, then that seems like a sensible, albeit risky (
cough, cough, Apple's legal department), strategy.
Got to say that the big plus for Asus surely has to be that they're going to get a better/closer relationship with Google out of this. If so, then it stands to reason that future Asus devices (e.g. whatever comes after the current Transformer Infinity) will have better implementations of future Android OS's, e.g. Key Lime, etc. Which - from my point of view - makes it even more of a certainty that the replacement for my much-liked Transformer tablet will also be from Asus.
Although if Asus UK is reading this, then a trade-in programme for my TF101 would make it a dead certainty! :mrgreen:
I quite like Asus - their support isn't the best, but I've had few problems with their motherboards and video cards. I've even given thought to replacing my (misbehaving) Cisco E4200 router with one of Asus' new 802.11n ones (56U or 66U).