I struggle here with Google's business model, and the impact their efforts have on other Android tablet vendors. At this price point the profit (if there is any to speak of) must be wafer-thin.

But Google can handle such wafer-thin margins because the secondary markets that this tablet secures for them. No other Android tablet vendor can enjoy the same control over the underlying OS, the same footprint in terms of Apps ecosystem (and importantly the revenue derived from this), the same intimacy between online applications/services and hardware. All these things mean Google can 'get away' with pricing this tablet as cheaply as they do.

But where does that leave Samsung, LG, and the others ? The big risk for us as consumers here is that Google will in fact reduce, not increase, the amount of credible competition against Apple by jeopardizing the competitors' capacity to derive profit from tablets.