According to Reuters, Internet search giant
) announced the launch of its second-generation Nexus 7 tablet,
which will be powered by
) Snapdragon processor. Google will start selling its flagship
tablet from Jul 2013.
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.
The second-generation tablet will come with a better screen
resolution and have a thinner design. Google decided to install
Qualcomm's chip, replacing Nvidia Corp's Tegra 3. Tablets with
fast processors offer improved performance and therefore enjoy
steady demand. With a new processor for its second generation
Nexus tablets, Google hopes to make inroads into the overcrowded
Google is yet to disclose the price of its latest tablet but
we are expecting 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 hardware.
Recently, Google also launched a same-day delivery service that
indicates increased interest in the fast-growing ecommerce
market. Therefore, both these companies gain from very 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's shipped
22.9 million tablets in the fourth quarter of 2012. In the
process, Apple captured 43.6% of market share, followed by
Samsung's Galaxy line of tablets with 15.1% share, Amazon's
Kindle Fire with 11.5% and others. Google is way behind its
competitors, but its Android-based tablets are gaining on
iOS-based tablets every day..
Further, IDC is predicting that tablet shipments may reach 350
million by the end of 2017. It is predicting that lower screen
size i.e. 7 inch and below may become more popular as consumers
prefer smaller devices for daily use.
In the fourth quarter of fiscal 2012, Google's gross revenue
(including TAC) touched a record $14.4 billion, representing
sequential and year-over-year increases of 2.3% and 36.2%,
respectively. Excluding the $1.5 billion contribution from
Motorola, revenues were up 21.9% from the year-ago quarter.
Google has a Zacks Rank #3 (Hold).
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