Google's Loss-Leader

Ewan Spence on the strategy for Google's loss-leading Nexus 7:

The Nexus 7 strategy is based around the Google Play store, where apps, music, and media can be purchased and consumed on the new 7 inch tablet. As a launch offer every tablet will come with free credit to spend in the Play Store – once you buy something the hope must be you’ll keep on buying with your own money.

Interesting, but it doesn't really jibe with what is well know about Android's users (Gene Minster, via Apple Insider):

In other words, it appears that Apple has roughly 85-90% market share in dollars spent on mobile applications

Should be interesting to see how this shakes down, but suffice to say that I doubt upsetting your hardware partners to try and make it up in purchases from a customer base that aren't big spenders may not be the best bet.