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


Editor in Chief
Staff member
Jan 5, 2011

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
When Google came out with the Nexus line, made by ASUS, ASUS wasn't coming out with much new product for some time. This may have been because they were so busy building the Nexus. Now that they have ramped up, (let's face it, they can make more money on an ASUS branded product than if they had to share with Google), Google may now be seeing them as to far out front with their own branded product so more direct competition.

You don't see HTC building Samsung products. ;) If you asked who built Apple products most people would say Apple. NOT!

And even if they thought about it they probably still wouldn't be able to come up with the company name.
The motherboard manufacturer that practically invented the netbook space is now one of the major players in the tablet space. Asus plans to continue growing its market share in the future by providing a wide range of tablet devices that appeal to diverse consumer needs. Earlier this year, the Taiwanese company released the Fonepad, the first android tablet that runs the new Intel processor and is a budget friendly option in the market. Built upon the successes of the ASUS 7” android tablet range, Fonepad brings real voice capabilities to a tablet, incorporating all phone and tablet functions into a single device.
I am surprised any tablet company would want to make the Nexus. These companies should are join forces and tell Google to make their own tablet.
Makes no sense what these companies are doing making Google tablets better than their own tablets.
These companies should focus on their own tablet every time releases a tablet they should just release their own better tablet, cheaper.