Nexus 7 16GB Defective out-of-box (Australia)

I just received my 16GB Nexus 7, which I ordered directly from the Play store in Australia. The device is physically impressive, but mine appears to have some serious defects:

  • Upon first turning it on and going through the setup wizard, I found some of the buttons and keys would not register accurately, and I had to physically push harder to get good screen response.
  • After completing all the setup screens, I noticed very strange behaviour on the home screens, namely:
    • The Google Now/Google Search screen would randomly appear all by itself, even though I didn't touch anything anywhere near it
    • Swiping between the different home-screens would just get stuck half-way through, or quarter of the way though, then after a few seconds bounce back
    • Trying to remove widgets was almost impossible - I would dwell on them to enable the move operation, then move them over the Trash bin at the top and release, but they would just get stuck up there and eventually bounce back down. A lot of the time the Notification area would just show up instead.
  • One bug that I could reproduce consistently was going in to Settings/Developer Options and trying to flip the switch in the top-right from Off to On to enable it. In portrait mode, the switch basically does not register any input and is impossible to interact with. 
    • Flipping to landscape mode let's me flip the switch to On, but then it automatically bounces back to Off in about a split second. 
    • Sometimes a dialog box pops up on the screen for around half a second and disappears. 
    • Sometimes this dialog box stays up for longer - the dialog actually asks you to confirm that you want to enable Development options and warns about the risks. I have to try multiple times to catch it in time to click Ok so that the switch stays on.
  • Related to the above is long-pressing the Power button, which brings up the Power menu. This also randomly disappears after half a second or a second, but sometimes sticks around for long enough to try and touch a button, which often don't respond.
Steps taken to troubleshoot:
  • I thought these might be software related, but this was a fresh Nexus 7, straight from the Play store, which came in a sealed box. I did a factory reset anyway, but the problems persisted.
  • I also let the device update OTA to Android 4.1.1, but this didn't fix any of the problems either.
  • So I though perhaps there's something wrong with the stock image on the device. I downloaded the factory Nexus 7 image directly from Google servers and followed instructions to wipe everything and flashed that. It didn't fix anything, same problems.
It seems to me that there may be something wrong with the screen - it detects or generates random touch events which screw up your interactions. So for example, when I try to flip the Switch, random events may be causing the dialog to close automatically. Likewise if I just leave the device on the home screen, it sometimes randomly activates Google Now...

All in all, the device is unusable, and I have to now try and figure out how to send it back :-(


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