Google sells out of 16GB Nexus 7 tablets

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Google's officially out of stock of 16-gigabyte Nexus 7 tablets. And, according to sources speaking to The Guardian's Charles Arthur, it's because the company "seriously underestimated" demand for the seven-inch device.

"The Guardian understands that Google's planners had thought that buyers on the Google Play store, more than from physical or online retailers, would be more committed to the company's 'cloud' concept, and so would have more of their content stored online, rather than wanting to keep it on the device," Arthur wrote.

"But most buyers appear to have noted that the storage on the device cannot be upgraded and decided to get the larger model," he added.

While the eight-gigabyte version of the Nexus 7 tablet is still available for purchase on the Google Play store – and ships within three to five days of doing so – the page for the 16GB version now only shows a new box that asks potential purchasers to enter their email addresses. Once the 16GB tablet becomes available, Google will begin notifying customers.

The shortage in Nexus 7 tablets isn't just confined to Google's own online store, however. As we reported a week and change ago, Nexus 7 tablet allocations have been running low – or running out – at brick-and-mortar stores like GameStop, Sam's Club, and Staples, to name a few.

The popular tablet starts at $199 for the 8GB version – which is Google's way of putting Amazon's $199 Kindle Fire on notice – and $249 for the 16GB version.

Google has yet to release sales figures for the Nexus 7 tablet. And while the device is certainly surfing a wave of popularity at the moment, it remains to be seen just how well it'll play in the seven-inch tablet market if (or when) Apple decides to jump in with the much-rumored "iPad Mini" that's allegedly in the works.

According to a recent teardown of the Nexus 7 by IHS iSuppli, the device costs anywhere from $152 to $167 to make – which means that Google just barely breaks even on its 8GB tablets and enjoys a small profit on its 16GB tablets (by basically charging an extra $50 for $7.50 worth of memory).

Copyright © 2010 Ziff Davis Publishing Holdings Inc

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