Google seemed to have done everything correct with the Nexus 7 except providing more of the device on stock with its retailers and distribution partners. The demand for the device has been so much that within days of launching the device, Google was seen forced to stop taking further orders online. The 16 GB version, which is clearly the better of the two because of more space and a marginal difference in price, has been the runaway favorite among consumers. More and more users are vying for the 16 GB version because the Nexus 7 does not have an option to plug-in a MicroSD card and at only $249, the device does not even burn their pockets.
Currently the 16 GB device is showing up as “ship soon” on Google Store. As for the retail stores Costco, Gamestop, Sam’s Club, Office Depot and Staples, are all sold out too. Their online stores show the standard disappointing canned messages “backordered,” “in-store only,” “coming soon,” or the more common “out of stock.” Currently there isn’t any major retailer online or offline within the metropolitan areas that has the Nexus 7 listed as available.
Google has been watching the tablet market for a while. They have watched and saw the high end segments devoured by Apple and Samsung and saw smaller players such as Amazon, Motorola and HTC also getting a share. It is clearly a good judgment on the part of Google to launch their tablets in the low price-band category. They realized that it would be difficult to compete with Samsung and Apple with such a major foothold in the market and with such good products.
The only possible segment that they could target was the lower price-band, where users would be looking for a cheaper and a more utility-based model that they can use to check mails, surf a bit, read a book or even enjoy a game or two on the go.