Google’s Nexus 7 Android 4.1 tablet is off to the races

Google’s new Nexus 7 is now available for sale and early reports show it's been selling out at stores where customers pre-ordered the sleek new tablet.

Several major retailers said they were already sold out of the Nexus 7, according to Reuters. In its roundup story, the news service said GameStop had already run through its first two allocations of the Nexus 7, While Sam’s Club and Staples listed the device as being sold out on their websites Friday. 

Office Depot’s website says the $199 Android 4.1 (Jelly Bean) tablet is still available as of Friday afternoon. 

It’s not known how many units stores were allotted. Google also sells the Nexus 7 through its Google Play online store. “We blew through the first two allotments,” Reuters quoted a GameStop spokesperson as saying. The retailer is expecting another allotment in August. 

Reviews have been overwhelmingly positive for the Nexus 7, built by Asus in partnership with Google, with many asserting the device has better performance and features than Amazon’s $199 Kindle Fire. Amazon is expected to come out with a new Kindle Fire later this summer.

A teardown analysis released by IHS this week estimates that the Nexus 7 costs $154 to build, or about $18 more than the Kindle Fire. However, that comparison is based on Amazon’s current estimated bill-of-materials. IHS notes that it estimates the Kindle Fire initially cost about $191.65 to make when it was first released last November. 

Unlike Apple’s high profit margin iPad, Google and Amazon are more interested in using the device to promote and generate sales at their respective online stores. Google also has used the Nexus brand to create a cutting edge device it hopes will spur its hardware partners bring new innovations to market. The search giant took this tack when it released the Nexus smartphone. 


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