Google’s Nexus 7 tablet: Flying off the shelves this holiday season?

by Doug Drinkwater

August 8 2013

The new Nexus 7 starts from $199
The new Nexus 7 starts from $199

The second-generation Nexus 7 may have only launched at the end of last month but a new report claims that demand for the new Android tablet could pick up towards the end of the year.

Citing sources in Taiwan’s supply chain, Digitimes reports that Google will ship 3.5 million new Nexus 7 tablets in the remaining four months of 2013, a healthy number considering total Nexus 7 shipments have apparently only reached six million since the original model launched last July.

However, it may well be that the Nexus 7’s progress will be checked by the Chinese market and Asus, which co-built both Nexus 7 tablets.

Google quit the Chinese market back in 2010 after failing to comply with the country’s Internet policies, and it looks unlikely that the search giant will be able to convince the Chinese government to allow the device to enter the market.

This will be something of a missed opportunity for China, with the country having emerged as one of the fastest growing tablet markets in recent months.

Another issue which could face Google this holiday season is the possibility that the Nexus 7 faces direct competition from Asus.

The firm is targeting 12 million tablet shipments for the year but looks likely to fall short of that target, leaving the Taiwanese brand with no other option but to significantly cut prices. This would not be overly unexpected -- KGI Security analyst Mingchi Kuo recently claimed that Asus will cut tablet prices by 40% in the third quarter.

Asus has reportedly shipped 5.7 million first-gen Nexus 7s, but the 3.5 million shipments for the follow-up model would still leave the company 2.8 million short of its target. 

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