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