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Nexus 7 Supply Issues Stalling Growth, Says Report

by Mark Hearn | August 10, 2012August 10, 2012 8:30 pm PST

A few weeks ago, the Nexus 7 was selling like gangbusters. While high sales are always good for business, ASUS began struggling to meet the massive consumer demand for the popular bargain-friendly tablet.

Online advertising firm Chitika reveals that supply issues have delayed the Nexus 7’s potential growth. At the height of Nexus 7 sales, Chitika forecasted Nexus 7 to surpass Amazon’s Kindle Fire in web traffic rankings. Those predictions claim the transition should have taken place by now; instead the Nexus 7 is still behind the Kindle Fire by a great distance.

Web traffic from the Nexus 7 to Chitika’s ad network members grew quickly within the first few weeks of the device’s release, but growth appears to have slowed over the past three weeks. Chitika notes that its tablet data shows Nexus 7 accounts for 0.35 impressions per 100 iPad impressions. These statistics are fairly close to the 0.3 impressions the ad firm reported three weeks ago.

The culprit behind stalling the tablet’s growth is thought to be recent Nexus 7 supply shortages. According to the report, reduction in new Nexus 7 owners results in less people browsing the web from the device than expected. On the other hand, existing Nexus 7 owners could be using the device less than before due to the excitement of owning a new device wearing down.

Sure, the stagnant number of Nexus 7 accounts can be due to less supply, but it could also be the negative hardware feedback users have been experiencing (e.g., dead pixels to lifted displays). At this point it could be a either of those factors or the market’s initial head-over-heels love for the Nexus 7 has passed.

Now that the tablet is back in stock at Google Play, it should be interesting to see if these numbers improve over the next few weeks.


Mark Hearn

Mark Hearn is a nerd's nerd if ever such a thing existed. Covering the mobile scene for several years, he also has a love for film, sports, gaming...