Sales of Google Nexus 7 are off to a roaring start, with several retailers listing Google’s tablet as out of stock since its release this Friday. A GameStop spokesperson told Reuters “We blew through the first two allotments,” but mentions that a third shipment will be available in August.
If able to maintain its fast sales pace, the Nexus 7 could become the first Android tablet to really put a dent in the overcrowded market that is currently dominated by Apple’s iPad. Putting its money where its mouth is Google’s execs have gone on record to say that it will not profit from Nexus 7 tablets sold in retail stores. The focus with the software giant’s first tablet is to attract more consumers to its ecosystem of online content.
Not completely taking a loss on the Nexus 7, IHS iSuppli recently performed a teardown and assessment of the 7-inch tablet’s components. The firm’s findings revealed that it costs Google around $152 to make its entry-level 8GB tablet, which retails for $199 and about $160 for its 16GB model, which retails for $249. This slim gap may offer a small profit on tablets sold directly by Google through itsPlay Store.
While we love the Nexus 7, we wonder if it will it maintain its bullish pace once other competitive budget tablets are released? As Amazon prepares to release a follow-up to its Kindle Fire and major players such as Apple and HTC are believed to have new tablets on the way, Google will have its work cut out for it. But for now we’d have to say that things are definitely off to a great start.