Google's overheads for this product are much, much lower than Apple's. No glitzy stores, free operating system, minimal hardware development costs, and either direct sales or channel sales of the higher-margin 16GB product only.
So, it seems likely that Google is making a profit, just not a massive one, and this is likely to increase as components get cheaper. The Kindle Fire's cost of manufacture is down to $139 now, so they are no longer subsidizing either.
Thats not the point of the article. Its because Google and Amazon are subsidizing the cost of their tablets so much that the consumers are expecting other manufactures to do so.
Google aren't subsidizing anything at these prices. According to Forbes, "The $199 Nexus 7 8 GB variant costs exactly $151.75 to build while the $249 Nexus 7 16 GB variant costs $159.25. This implies gross margins of nearly 25% to 35% for the device, which are closer to what Apple makes on each iPad." Apple's gross margin on the "new iPad" is around 20%.
Chrome not being able to bookmark all tabs to a folder is a serious deficiency that prevents me from saving sets of links that are the result of possibly lengthy research. Another constant annoyance is Chrome saving all files to Downloads instead of giving me the option to open.
Bookmarking all tabs is right-click on any tab, Bookmark All Tabs. Prompt for download location is a setting in Tools, Options, Under the Hood.
"Paul Lynde to block..." -- a contestant on "Hollywood Squares"