In its first weekend of general release, the Nexus is sold out at some retailers. Stores such as, GameStop and staples have listed the device as out of stock, and according to Newsday.com, GameStop has gone through its two allocations of the tablet. Its next shipment isn’t due until August. Was Google’s forecasting of expected sales off or was this just an unexpected peak in sales due to its introduction?
All the popularity may be due to its affordability and favorable reviews from tech reviewers. Prices start from $199 for a 8GB version to $299 for its 16GB version. Where other tablets have failed, the Nexus might just be the first to give Apple’s Ipad competition. But, one of their problems is that they are reportedly making a very narrow profit on each of their tablets. The profit margin on each tablet is just over $30 per tablet. If Google continues to sell their Nexus with such a low profit margin, will they still come out on top and continue to be profitable? Or will they be forced to discontinue the tablet after the buzz of its introduction has worn out?