Internet search giant
) unveiled its second-generation Nexus 7 tablet, powered by
) Snapdragon processor. Google will start selling its flagship
tablet from Jul 30, 2013 in the U.S through its online store.
The second-generation tablet has a better screen resolution
and a thinner design. Google decided to install Qualcomm's chip,
) Tegra 3. Tablets with fast processors offer improved
performance and therefore enjoy steady demand. . With a new
powerful processor for its second generation Nexus tablets,
Google hopes to make inroads into the overcrowded tablet market.
The different versions sell at $229 to $349
) is primarily a hardware vendor and therefore greatly dependent
on device sales. The company is likely to maintain its leadership
position with the soon-to-be-launched next-generation tablet,
According to IDC, Apple's shipped 19.5 million tablets in the
first quarter of 2013. In the process, Apple captured 39.6% of
market share, followed by Samsung's Galaxy line of tablets with
17.9% share, Amazon's Kindle Fire with 3.7% and others making up
the rest. Google is way behind its competitors but its
Android-based tablets are gaining on iOS-based tablets every
Further, IDC predicts that tablet shipments may reach 350
million by the end of 2017. It also predicts that smaller screen
sizes i.e. 7 inch and below may become more popular as consumers
prefer smaller devices for daily use.
In the second quarter of fiscal 2013, Google reported solid
earnings of $7.81 per share that missed the Zacks Consensus
Estimate by $1.23 or 13.7%. Google's gross revenue (including
total traffic acquisition costs [TAC]) came in at $14.10 billion,
representing sequential and year-over-year growth of 1.0% and
19.5%, respectively. Google's standalone revenues grew 1.2%
sequentially and 19.5% year over year but Motorola's growth rates
continued to lag.
Google has a Zacks Rank #5 (Strong Sell).
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