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At cost tablet is so popular ASUSTek is upping production

While the Galaxy Tab 10.1 from Samsung Electronics Comp., Ltd. (KSC:005930) saw some modest international sales success, no Android tablet to date has truly challenged market dominator Apple, Inc. (AAPL), unless you count Amazon.com, Inc.'s (AMZN) quasi-Android Kindle Fire.

Google Inc.'s (GOOG) new Nexus 7 tablet runs the main-line Android release -- specifically Android 4.1 "Jelly Bean" -- unlike the Kindle Fire, which runs Amazon's own special fork of Android.  But the tablets do share a common price -- $199 USD for the 8 GB Nexus 7.

Now they share something else -- the Nexus 7 appears to be the first pure-Android tablet to be a market-moving hit.

Google reports that despite demand for the 8 GB variant being soft, it is seeing wild demand for the 16 GB version that retails for a modest $249 USD.    The tablets are reportedly sold at cost, which may be part of their strong appeal.

The sales success of the higher-storage variant is unusual, given that competitors like Research in Motion, Ltd. (TSE:RIM) have typically seen their highest sales with the cheaper lower-storage models.  In fact, the success took Google by surprise and the company has now been forced to put sales of the popular 16 GB model on hiatus, as it struggles to catch up with a back-log of orders in the U.S. and UK.

Nexus 7

The company now lists the 16 GB model as "coming soon", offering hopeful buyers the chance to sign up for an email alert when more stock becomes available.

Announced June 27, the tablet's hardware is produced by Taiwanese computer maker ASUSTek Computer Inc. (TPE:2357).  The tablet packs a Tegra 3 quad-core CPU from NVIDIA Corp. (NVDA).  It is primarily available through the Google Play store, but was also picked up by several major U.S. and UK retailers late last month.

The tablet has reportedly sold out at many of its U.S. partners' stores.  ASUSTek is upping production, but it may be weeks before customers can get their hands on the hot tablet.

The success of the 7-inch Kindle Fire, and now the Nexus 7 have reportedly alarmed Apple who is reportedly feeling pressure to release a "mini-iPad" early than planned.

Before his death CEO Steven Jobs vetoed such a design, insisting it would be a market failure.  In one of his numerous rants in his waning years, he commented:

The reason we wouldn't make a 7-inch tablet isn't because we don't want to hit a price point, it's because we don't think you can make a great tablet with a 7-inch screen.  The 7-inch tablets are tweeners, too big to compete with a smartphone and too small to compete with an iPad.  [Increasing screen resolution on small devices is] meaningless, unless your tablet also includes sandpaper, so that the user can sand down their fingers to around one quarter of the present size.

Well the success of its rivals reportedly has Apple prepared to tell its legion of loyal followers to get the sandpaper out and ready their fingers for a mini-iPad.

Sources: Google Play, The Guardian



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Silly
By EnzoFX on 7/23/2012 4:48:07 PM , Rating: 4
I don't know who takes Jobs' rants more seriously, the accused "sheeple" or the blind anti-apple anti-fanboys. Why not take his quote as face value? As they usually are. IMO it's relative to that place in time, technology changes, if 7" became viable then any company would consider it. Is this not stupidly obvious?

It's like getting caught up on those quotes that no one would ever need X amounts of KBytes of Ram. Oh boy were they stupid! Uh... They obviously meant is was outside their limited capabilities or outside the requirement of current solutions.




RE: Silly
By sprockkets on 7/23/2012 5:09:58 PM , Rating: 3
Face the simple fact: If Steve Jobs was alive there would be NO iphone that was not a 3.5" screen or a smaller tablet.


RE: Silly
By Tony Swash on 7/23/12, Rating: -1
RE: Silly
By Pirks on 7/23/2012 8:00:43 PM , Rating: 3
quote:
if Apple do launch a smaller version of the iPad they will crush the Google offering and make a profit doing so
Ya just like they crushed Android phone marketshare with iPhone... oh wait ;)))


RE: Silly
By EnzoFX on 7/23/12, Rating: -1
RE: Silly
By bupkus on 7/24/2012 6:14:42 AM , Rating: 2
quote:
they will crush the Google offering
Okay, now you've done it. "Crush"? I wait for the thundering crash of the apocalypse.


RE: Silly
By EnzoFX on 7/23/2012 8:34:22 PM , Rating: 2
No, you don't get it at all do you. Things change and evolve. Someone in his position speaks to that place in time. 3.5" was no viable in their opinion at the time. You can't honestly say what someone or some company would never do, that's idiocy.


RE: Silly
By Cheesew1z69 on 7/24/2012 7:56:26 PM , Rating: 2
Everyone gets it, apparently you don't. I am sure he said that there was no need for a bigger screen phone and smaller tablet. And if he were alive, I am sure it would still be that way.


"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone














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