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Google Nexus 7 Selling Out in First Weekend; Costs $152 to Make 8GB

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The Google Nexus 7 is selling out fast at several retail outlets in its first weekend of nationwide release, with some retailers already reporting that the 7-inch Android tablet is out of stock and that they are have troubles filling orders.

Retailers were taking pre-orders on their websites for the tablet and GameStop has pulled the Nexus 7 tablet order page from its website. Meanwhile, Adorama and Staples said the tablet had sold out and that they were waiting for additional inventory.

The tablet, built by Google and Asus, isn't seen as a direct rival to Apple's iPad. The iPad is a larger device at nearly 10 inches that has a higher resolution display and starts at $499.

The Nexus 7 starts at $199 for the 8GB version-putting in direct competition with Amazon's $199 Kindle Fire tablet-and a 16GB version is available for $299.

Google announced the Nexus 7 on June 27 at the search giant's Google I/O developer conference in San Francisco. It has a 7-inch screen, a quad-core processor, and the Android 4.1 OS code-named Jellybean.

Customers have been able to pre-order the tablets from Google and through a handful of its retail partners over the past two weeks and the devices began shipping to consumers Friday.

According to analysts at the research house IHS iSuppli took the Nexus 7 apart to see how much the whole tablet was worth. Surprisingly, the manufacturing cost is not too far from the selling price. According to AllThingsD, The 8GB model costs $151.75 to build and retails for $199, while the 16GB costs $159.25 to make and sells for $249.

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