Google’s wildly popular Android Jelly Bean powered Nexus 7  16 GB tablet has so far out stripped sales projections that the company has halted sales for now. One can apparently still get on a waiting list, but apparently it will be some time before any more orders for the 16 GB model can be fulfilled either in the United Kingdom or the United States.  That is not to say that a Nexus 7 tablet is unobtainable. Google Play is more than happy to sell you the 8 GB version for £159. Sources indicate that Google has plenty of those  on hand. Apparently Google thought that buyers would flock to the 8 GB model as the lucky people in the US, who can buy the Kindle Fire have done. At first glance, that would make sense as the Nexus 7 is  a far more capable device at the same $199.00 USD price point as the Kindle Fire.  Further, will all of Google’s cloud based storage options who really needed the extra 8 GB?

Sadly for Google and frustrated, would be purchasers, early reviewers opined that the lack of external expandable memory and the relatively low cost of opting for the additional 8 GB for only forty quid more made the 16 GB Nexus 7 model the way to go. This leaves Google with an excess of the 8 GB model that they are virtually selling at cost, and none of the 16 GB tablet that their retail partners are clamoring for. Complicating matters further, Amazon is rumored to be on the verge of a Kindle Fire 2, that might actually be sold in the UK and Apple appears to be all but certain to be releasing a iPad “mini” that will also be competing in this space.

It will be interesting to see how quickly Asus, the OEM for the  Nexus 7 will be able to refill the retail channel. To a certain degree there are relatively few suppliers for the basic components, especially memory for Asus to turn to. Amazon, Apple and even Microsoft are all believed to be cranking up tablet production and no doubt trying to deny supplies to their competitors.  However, according to reports that have torn down and priced the components of the Nexus 7, while the raw cost of 16 GB models over 8 GB Nexus 7s is only $8.50 USD or a bit more than £5 GBP , the write up is far different, which explains why few if any of Google’s retail partners wanted to handle the 8 GB Nexus 7 and why Google will want to get back in the game with the 16 GB Nexus 7 as soon as possible.

Advertisements