Hot Demands for Google's Nexus 7 Lead to Supply Shortage

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By Erik Pineda | July 17, 2012 2:58 PM EST

They're selling like hotcakes, media reports said, as U.S. retailers, both online and physical stores, reported running out of stocks for the newly-shipped Google Nexus 7, indicating a rousing reception for the mini-tablet.

According to PC World, stocks of the quad-core device, which stands on the new Android 4.1 or Jelly Bean, were already depleted as early as Friday last week, forcing sellers to notify would-be buyers that replenishment may only come by mid-July.

Many retailers fear that AsusTek, the company tasked by Google to assemble the Android tablet, may not be able to deliver until the second week of August, likely frustrating U.S. buyers wishing to snap up the gadget that Google retails only for as low as $US199 per unit.

The starting price was for the model with 8GB of internal storage as another model with double capacity sells for $US249 each.

International prices may vary a bit like in the case of Australia, where tech products tend to slapped with higher sticker price as determined by international distributors, according to a recent government submission before a Parliamentary inquiry on the matter.

The gadget is concurrently available in the United States, the United Kingdom, Australia and Canada, either through conventional or online stores.

Google itself is offering the Nexus 7 on its Google Play, with pledges that the device will be delivered within two weeks following the placement of orders.

Tech watchers said Google's online store offer the best option for U.S. and international buyers that ran out of unit stocks on their locality but they will have to wait, which is the same case with other online retailers.

Google has been silent on the actual number of Nexus 7s that were produced by AsusTek or how many have already hit the markets worldwide, PC World said, leaving many to speculate if the supply pipeline will be able to respond with the scorching demands.

As expected, buyers trooped to stores wanting to take advantage of the affordable price tag for the Nexus 7, which PC Magazine said was being sold at a losing retail price.

Google shelled out as much as $US167 to finance the assembly of a single Nexus 7 unit, the tech publication added, with analysts assuming that the Internet giant is banking on the likelihood that hot patronage of the product would further spike up global consumer interests on the Android ecosystem.

That should translate to long-term ROI for Google, which is locked in a fierce race with Apple to dominate the increasingly lucrative mobile computing market.

The Nexus 7 is powered by NVIDIA's Tegra 3 processor and has a dedicated graphic engine that amply supports the device's HD image and video rendering, which were emitted on a screen resolution of 1280 by 800.

Each unit is capable of running approximately nine hours before running out of battery juice, with extensive operations such as live video streaming and music playbacks, Google said.

On standby mode, the Nexus 7 can last about two weeks, which is among the unit's lure that convinced many first-time buyers to finally test out the tablet experience outside of Apple's iOS realm.

Early reviews pointed to the new Google product as hands-down winner against its nearest rival, Amazon's Kindle Fire, which in inferior to Nexus 7's overall specs save for the identical unit price of the basic Nexus brick.

It may take, analysts said, another Apple product to check the surge of Nexus 7, that is if the tech titan would indeed release a mini iPad, the product that has been the staple of online tech speculations for some time now.

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