Nexus 7 kills Kindle Fire, but isn't up to iPad, analysts say
- 27 June, 2012 20:18
Google's $US199 Nexus 7 tablet is a device that's more than a competitor to Amazon's Kindle Fire, but is not on the same scale as the Apple iPad -- at least not yet, according to analysts.
The secret to Google's success with the Nexus 7 will come down to the apps that developers build for it, and how successfully Google integrates the tablet into its Google Play cloud-based media and apps repository, analysts said.
"Nexus 7 is more than a Kindle Fire competitor, but certainly no iPad killer," said Jack Gold, an analyst at J. Gold Associates.
Google has "shown an interest in building a presence in the tablet market and using [its Google Play] content to differentiate the hardware," said Carolina Milanesi, an analyst at Gartner.
"Fire happens to be the device Google competes against at the moment, but let's be clear: Google did not do this because they are worried about the Kindle Fire," Milanesi added. "They did it because they need to be successful in the tablet market, and we have seen that $199 is a sweet spot."
Gold said he was impressed that the Nexus 7 has a high-quality Tegra 3 quad-core processor, and that Google could still keep the price for the 8GB version below $US200. Google is also selling a 16GB version for $249, and both are on sale at the Google Play site, with delivery set for mid-July.
Gold said the 1280 x 800 screen is "reasonable, but not the highest quality out there" without high definition, but he still called the Nexus 7 a "credible contender at a good price that should help Google get a kickstart in the Android tablet market."
The Fire from Amazon sells for $US199 and also has a 7-inch screen. An updated version is expected in July from Amazon at possibly a lower price. The Fire has about 7 per cent of the global tablet market, according to IDC, while the $US499 iPad, at 9.7-in., has about 60 per cent of the market -- a bigger target for Google.
"Google just cut [Kindle Fire's] knees off with this Nexus 7," said Ken Dulaney, also a Garnet analyst. "The going will be very tough for the Amazon Kindle."
Amazon did not immediately respond to a request for comment.
Even so, some analysts said Google starts with a disadvantage over both Amazon and Apple. "Google's user base for music, books and movies is not nearly as strong as Apple or Amazon, so it will take time to build a strong customer base," said Frank Gillett, an analyst with Forrester Research.
"Google's real tablet problem is the lack of compelling tablet-optimized apps, and Google has yet to address how to motivate developers to fill the gap," Gillett added.
James McQuivey, another Forrester analyst, said Google will need Google Play content and services and video content from YouTube to succeed. "That range of services will be the secret to stitching together a rag-tag fleet of Android gadgets into a platform that can compete with Apple for minutes of users' attention," rather than requiring users to pay premium dollars for an iPad or other more expensive device to do so, he said.
Google also picked up the low-price lesson from Amazon with its Kindle Fire, McQuivey said. "Google can see that the only way to beat the premium-worthy iPad is to go for the millions of customers who are ready for smaller and cheaper tablets," he said.
The Nexus 7 uses a reference design from Nvidia called Kai. The design is intended to use the Tegra 3 processor to increase battery life and offer a "premium experience" in a low-cost tablet, an Nvidia spokesman said. Nvidia also has a blog on its website that explains how the Nexus 7 uses the Kai design.
Forrester expects 191 million tablets to be in use globally this year. By 2016, that number is expected to jump to 760 million tablets. In 2012, Forrester said the iPad will reach a 68% tablet share globally, with Android at 16%. By 2016, iPad will drop to 53%, while Android will drop to 8% and Windows tablets will take 18%.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
Why change management doesn’t work
Larry Page wants to see your medical records
Dual-Persona Smartphones Not a BYOD Panacea
After two-year hiatus, EFF accepts bitcoin donations again
CIOs struggle to deliver timely mobile business apps: survey
Endpoint Protection Overview
With the exponential growth and sophistication of malware today, the security industry can no longer afford to ‘bury its head in the sand’. The bottom line is that traditional endpoint security protection is now ineffective due to the sheer volume, quality, and complexity of malware. This paper looks at this problem and how Webroot, by going back to the drawing board on countering malware threats, is revolutionising endpoint protection and solving the issues that hinder existing endpoint security solutions. Download now.
Advanced Targeted Attacks
The new threat landscape has changed. Cybercriminals are aggressively pursuing valuable data assets, such as financial transaction information, product design blueprints, user credentials to sensitive systems, and other intellectual property. Simply put, the cyber offense has outpaced the defensive technologies used by most companies today. Find out more on how to protect against the next generation of cyber-attacks.
Customer Success - Slater & Gordon Lawyers
Lawyers work hard, and they work fast. Any activity that takes their focus away from the task at hand represents lost productivity and lost revenue. Slater & Gordon Lawyers needed to filter spam and email-borne malware and provide high availability for email. Results from the business solution they chose include 250 hours of IT staff time reclaimed annually for other tasks, long delays in email delivery alleviated, reduced email-related storage costs, and email failover to the cloud in minutes, avoiding hours-long outages. Find out how they got these results.