Google undercuts the market with the Nexus 7in tablet
Check out an article on KnowYourMobile.com that caught my eye – The Nexus 7 has doomed the traditional Android tablet
Basically, Richard Goodwin is arguing that Google has significantly undercut the market on pricing for its Nexus 7in tablet, taking the fight to Apple at a lower price point but seriously discomforting existing Android suppliers.
He compares prices of $400 dollars the likes of Samsung, Motorola and Sony have been charging for 10-inch models with the “super-low price point of £160 (for the 8GB model)” for the Google new 7-inch model.
It’s an interesting point. Taking it on, in the longer term, is Google cannibalising its own Android market by reducing the profitability for manufacturers, in a race to the bottom? Shouldn’t the Nexus be a premium product, anyway?
The recent success of the Nexus 7 must be particularly satisfying for Google. The company has been trying to crack this lucrative sector of the market ever since Apple unveiled its iPad back in 2010, and gaining a foothold now could prove to be vital as the mobile computing industry grows.
Google has certainly thrown a lot of weight behind the product – it’s cheap and features cutting edge tech in the form of Nvidia’s Tegra 3 chipset – but in doing so, the company could well have harmed the short-term health of the Android tablet market.
I must admit I struggle slightly to get my head around the ‘Nexus’ concept, moving from manufacturer to manufacturer for different devices… I can’t think of any equivalent model in any other market. Am I missing something significant?