32GB Nexus 7 Tablet Already on Retail Shelves
Price drop applied to 16GB model of Google's tablet.
Despite Google's cancellation of its Monday Android event due to hurricane Sandy, the search giant has unveiled a full new line of Nexus products. Among the new hardware is a 32GB upgrade for the Nexus 7, which has already leaked out into hardware channels. BetaNews is reporting that one Office Depot store is currently selling the device with a price of 249.99, while the 16GB variant has seen its price drop to $200.

Office Depot's website currently lists both the 16GB and 8GB versions of the Nexus 7 as "not available for purchase at this time."
Droid Life is also said to have seen the appearance of the Nexus 7's 32GB version at Office Depot, accompanied with a $50 price drop on the 16GB model.
Multiple online retailers have already outed the existence of the 32GB model of the Nexus 7, while one customer even received the product itself.
We have to remember that when the 8Gb version was released, it was sold at the cost of production. Adding 50$ for the 16Gb was not that greedy in this case if Asus wanted to make a bit of money!!!
However, I'm wondering what the profit margins are now.
Wasn't the 16GB version $249 until now ?
If so one could argue that they lowered the price too much then?
As you said... $50 for 16GB is too much :-)
COME ON GOOGLE ...