Asustek: Nexus 7 Sales Approaching 1 million a Month
Sales of Google Inc. 's Nexus 7, made by Taiwan's Asustek Computer Inc. , are closing in on 1 million units a month, the Taiwanese maker revealed. — The 7-inch tablet has created a big buzz this year with its low starting price of US$199 …
Context & Ripple Effects
Google's Nexus 7 had already shown early retail momentum after its July launch, with reports of it selling quickly across retail chains. Asustek's monthly sales disclosure turns that initial reception into evidence of sustained volume for Google's low-priced 7-inch tablet.
The result matters because Google is pairing its Nexus software strategy with Asustek's hardware scale, rather than treating the device as a limited showcase product.
First-order effects
- Asustek gains a high-volume tablet production line as Nexus 7 sales approach one million units a month, while Google expands the installed base for its Android tablet experience.
- Retailers that initially saw fast Nexus 7 sell-through have a stronger incentive to maintain inventory and visibility for Google's tablet.
Second-order effects
- Other tablet makers face added pressure in the $199 7-inch segment, where Google and Asustek have demonstrated that low pricing can be paired with meaningful demand.
- Asustek's demonstrated Nexus 7 volume strengthens its position as a manufacturing partner for brands seeking to compete in smaller, lower-cost tablets.
Third-order effects
- If sales hold at this level, the tablet market is likely to segment more sharply around lower-priced, smaller-screen devices rather than a single premium-tablet model.
- Google's hardware partnerships point toward device launches serving both as Android reference products and as vehicles for building platform scale.
The trend: The Nexus 7 is an early sign that Android tablet competition is moving toward high-volume, low-price hardware built around Google's platform.