After Google announced its new Nexus 7 tablet last Wednesday during their Google I/O event, Brian White of Topeka Capital Markets stated that Apple need not worry. For him, the search engine giant’s device is “just another Android-based tablet.”
Nexus 7: Not a Threat to Apple’s iPad
According to White, Google’s Nexus 7 is something that cannot threaten the Apple iPad. He also stated that the search engine giant’s first Android device—the Nexus One—was met with “muted enthusiasm.” He continued:
We believe the combination of Apple’s expanding digital grid, innovative design, unmatched aesthetics, leading app availability (with 225,000 native iPad apps), intuitive user interface, and expanding technology innovations will continue to keep the company on top of the tablet market for many years to come.
Apple probably doesn’t need to worry about Google’s latest tablet eating into its profit share. In fact, Android chief Andy Rubin admitted the company’s own profit margins for the device are extremely low: “When it gets sold through the (Google) Play store, there’s no margin. It just basically gets (sold) through.”
The latest projections from IDC suggest that Apple will take back market share from Android this year, as the Cupertino-based company is expected to achieve 62 percent of the tablet market.
Competing Against Amazon Kindle Fire
White also added that Nexus 7 is more likely to compete against Amazon’s Kindle Fire. That’s because both tablets have relatively similar specs, such as a 7-inch screen and display resolution of 1280 x 800 pixels, and the same price tag. In fact, Google indicated that they are eyeing the low end of the tablet market, a segment that Amazon took the lead in late last year with the Kindle Fire.
The search engine giant also admitted that the Nexus 7 was rushed to market. ASUS chairman Jonney Shih revealed to AllThingsD last Wednesday that they were only given four months to build the device. There was also the task of creating a high-end tablet that could sell for just $200. But whether the tablet was created to compete against the Apple iPad or not, it definitely made a buzz this week, especially since it was coupled with the Android 4.1 release.
The Google Nexus 7 was created in partnership with ASUS. For $199, the Android tablet features a quad-core CPU by NVIDIA, display resolution of 1280 x 800 pixels, and the latest Android 4.1 Jelly Bean. The device is expected to hit the stores this July.
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