[Rumor] Asus Might Lose Contract for Third Generation Nexus 7

[dgstorm]

For the last two years, the partnership between Asus and Google has seemed rock solid regarding the Nexus 7 tablets. Both years Asus was the builder of choice for Google's high-value but low priced Android tablet. If rumors from the supply chain are correct, that may change soon. According to the latest intel, Asus may not get the renewed contract with Google for the third generation of Nexus 7 tablets. This would put Asus looking to build a replacement for the Nexus 7 in that price-point. Supposedly, Asus is has slowly been flooding the market with several new Android tablets in an attempt to find a replacement product which can stick. Here's a quote with more of the details,

Asustek Computer's business strategy for the tablet market has changed recently, as the company is flooding the market with new models to see if any of them can continue the success the company has had with the Nexus 7. Asustek has released a total of five new tablets, the MeMO Pad HD 7, the second-generation Nexus 7, the Fonepad 7, the new PadFone Infinity and the recently released high-end Transformer Pad, priced at NT$15,900 (US$537) in the past three months, according to market watchers.

Since Asustek is also prepared to release the MeMo Pad HD 8, the MeMOFone HD 5, the FonePad Note FHD 6 and the PadFone mini in the near future, the market watchers believe the Taiwan-based vendor's market-flooding strategy could be risky.

Asustek shipped 6.3 million tablets in 2012 with the help from Google's first-generation Nexus 7. Although Google continued its cooperation with Asustek with the second-generation Nexus 7, rumors about the Taiwan-based vendor may lose orders for the next-generation Nexus 7 model, are pushing Asustek to accelerate its pace in trying to expand its tablet market share.

Of course, this year we heard similar rumors that the second generation Nexus 7 would be built by someone else, but that turned out to be false. If it is true, it makes you wonder why Google isn't renewing the contract with Asus. It is possible that there is no hidden agenda from Google nor any displeasure between the two companies. It has been standard practice for Google to change-out Nexus device builders every couple of years just to give other OEMs a time in the Google spotlight. This could simply be more of that.

Source: DigiTimes

 

[johnomaz]

This makes me kind of sad. I am very happy with the build quality from ASUS. But I will continue to buy a Nexus tablet in the future. Getting immediate updates to the OS from Google is worth it.

 

[dezymond]

I hope Asus makes it, I still really love my first gen N7. The second one has even better quality when I demo'd it. For my own personal reasons, I hope LG doesn't make it, otherwise I won't be buying.

 

[jspradling7]

My 7" has become a dust collector but it was fun while we used it. Almost as soon as we got the Nexus 10 the 7 was a goner. We just don't have a need for something between 5" and 10".

 

[leeshor]

I think Google, with all the new, (recent), ASUS tablets, sees them as direct competition they don't need. It doesn't matter that the name it Google Nexus because it says made by ASUS. Apple doesn't say their products were made by [anon] (not Apple).

 

[HorizonProductions]

That is quite sad, Asus is definitely my favorite hardware manufacturer, and they did a great job on the new Nexus. Could just be Google browsing the market, holding off the contract in case a better option comes up?