The Nexus 7's main selling point has been its affordable £159 price tag, according to the retailer.
"It's impressive that this product is our biggest selling Android tablet, and it will be really interesting to see if other manufacturers will follow suit with smaller tablets over the coming months to spice up the Christmas period," said Graham Stapleton, chief commercial officer at Carphone Warehouse
Vendors are now eagerly awaiting the release of more affordable tablets such as Amazon's new £159 Kindle Fire HD.
Although Carphone Warehouse, the UK's largest independent mobile retailer, declined to release specific sales figures, it said it has seen a huge demand for smaller-sized tablets and that 59 per cent of its total tablet sales feature cellular connectivity.
"Looking at the sales of the Google Nexus tablet, it's clear that there is a massive demand amongst our customer base for smaller tablets," said Stapleton.
"We're seeing a real shift in what customers are using their tablets for, with more and more watching content on the go. It's now common to see people using their tablets during the morning commute or catching up on the day's news in a local coffee shop, and smaller devices make it easier to handle," he added.