Reportedly, Internet search giant
) is likely to release its second-generation Nexus 7 tablet at
the end of this month.
Google, in collaboration with Asustek, launched its first
tablet Nexus 7 last year. Powered by Android OS, Nexus 7 comes
with a 7-inch display and an
) Tegra 3 quad-core chip. Google sold 4.5-4.6 million units of
the tablet in 2012.
Powered by the newest version of Android, the
second-generation tablet will come with a better screen
resolution and have a thinner design. Google decided to install
) chip, replacing Nvidia Corp's Tegra 3. Tablets with fast
processors offer improved performance and therefore enjoy steady
Google is yet to disclose the price of its latest tablet but
we expect it to be affordable. Google, like Amazon, is not
dependent on hardware sales. Both have a thriving Internet
business that could be well supported by proprietary
Recently, Google also launched a same-day delivery service
that indicates increased interest in the fast-growing e-commerce
market. Therefore, both these companies gain from low-priced
tablets that could create a large installed base for selling
), on the other hand, 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, iPad 5.
According to IDC, Apple 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, ASUS with 5.5%, and Amazon's Kindle Fire with 3.7%
Further, IDC is predicting that tablet shipments may reach 350
million by the end of 2017. It is predicting that the lower
screen size i.e. 7 inch and below may become more popular as
consumers prefer smaller devices for daily use.
In the first quarter of fiscal 2013, Google reported solid
earnings of $10.07 per share, exceeding the Zacks Consensus
Estimate by $1.24. Google's gross revenue (including total
traffic acquisition costs [TAC]) came in at $13.97 billion,
representing a year-over-year increase of 31.2%. However,
revenues excluding TAC came in at $11.0 billion, 12.7% lower than
our estimated $12.6 billion.
Google has a Zacks Rank #3 (Hold).
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