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See the best of Reuters photography. See more | Photo caption Inside San Quentin A look inside San Quentin prison, California's oldest correctional facility and home to the state's only gas chamber. Slideshow When lightning strikes Dramatic images of electrical storms. Slideshow Google's Nexus tablet selling fast across retail chains Tweet Share this Email Print Related News Google CEO Page recovering, was in office this week Thu, Jul 12 2012 Samsung wins court case against Apple because it's "not as cool" Mon, Jul 9 2012 Samsung wins bid to sell Nexus in Apple court battle Fri, Jul 6 2012 Judge who shelved Apple trial says patent system out of sync Thu, Jul 5 2012 U.S. Judge rejects Samsung request to lift stay on Nexus sales Tue, Jul 3 2012 Analysis & Opinion Sun Valley Day 1: Moguls arrive, let the fun begin! Will Microsoft learn through self-flagellation? Related Topics Tech » Media » iPad » An attendee uses Google Map on a Google Nexus 7 tablet during Google I/O 2012 Conference at Moscone Center in San Francisco, California June 27, 2012. Credit: Reuters/Stephen Lam By Malathi Nayak and Alexei Oreskovic SAN FRANCISCO | Fri Jul 13, 2012 5:09pm EDT SAN FRANCISCO (Reuters) - Google Inc's "Nexus 7" tablet is off to an encouraging start, with major retailers running out of the gadgets as the Internet company's first entry in an increasingly crowded market showed up in U.S. stores on Friday. GameStop said on Friday it had already run through its first two allocations of the tablet, co-developed by Google and Taiwan's Asustek that starts at $199 and has drawn glowing reviews from major gadget reviewers. Sam's Club, the warehouse chain owned by Wal-Mart Stores Inc, and Staples listed the device as being out of stock on their websites as of Friday. Office Depot's website continued to offer the device for sale as of the afternoon. Google unveiled the 7-inch tablet, which the company hopes will allow it to better compete against Apple Inc and Amazon.com Inc and funnel more people into its trove of online content, at its annual developer conference in San Francisco at the end of June. Consumers have been able to pre-order the tablet from Google and several retailers in past weeks, and Google said it began shipping devices to consumers on Friday. "We blew through the first two allotments," a GameStop spokesperson said. A third allotment of preorders will be available in August. The game retailer declined to share exact number of preorders. The Nexus 7 uses Google's Android mobile software, which has become the most prevalent operating system for smartphones globally, but has so far failed to make a big splash in the tablet market. By taking a greater role in the tablet arena, Google hopes to ensure that its online services remain front-and-center to consumers, as tablets by Apple and Amazon are increasingly becoming gateways to the Web and Web-based content such as movies and music. Google executives have been quoted saying that the company will not generate a profit margin when the Nexus 7 is sold in retail stores. A report by research firm IHS iSuppli on Wednesday estimated that the bill of materials for the $199 version of the device, which features 8GB of flash memory and a high-end Tegra 3 processor by Nvidia Corp, is $152. Apple still dominates the market for touch-screen tablet computers with its two-year old iPad. Amazon.com's $199 Kindle Fire tablet is based on open-source Android computer code, but the device features a customized interface that does not use many Google services. The Nexus 7 has drawn accolades from reviewers like the Wall Street Journal's Walt Mossberg. Pundits reckon the $199 Nexus 7 may seriously threaten the same-priced Kindle Fire, especially since Google's offering has a camera and a higher-resolution screen. Google Executive Chairman Eric Schmidt, speaking to reporters on Thursday at the Allen & Co conference in Sun Valley, said there was "immense demand" for the Nexus 7 in the first week after it was introduced. Shares in the company climbed 1.1 percent to $576.52, buoyed by a broader U.S. market rally. (Additional reporting by Jessica Wohl and Dhanya Skariachan in New York; Editing by Andrew Hay) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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