Google Nexus 7 Tablet Aims For Amazon, Not Apple
Newest First  |  Oldest First  |  Threaded View
User Rank: Apprentice
6/29/2012 | 8:33:32 PM
re: Google Nexus 7 Tablet Aims For Amazon, Not Apple
Although Eric is nominally right, he is fundamentally wrong.

The Nexus 7 is a head-to-head competitor with the Kindle Fire. In that sense, he is right. However, Amazon isn't fundamentally in the tablet business. The Kindle Fire is simply a vehicle to increase purchases of Kindle books and AppStore apps. It is not fundamentally a profit center for Amazon -- in fact it is quite likely a loss leader.

Amazon introduced the Kindle Fire under the "Gillette Principle" -- that is give the "razor" away free (or at a substantial discount) and make money off the sale of the "razor blades".

The Nexus 7 is competition with the Kindle Fire -- the razor itself. While the Nexus 7 will increase the sale for Google's own razor blades, it is also 100% compatible with Amazon's razor blades.

In other words, consumers may freely buy apps and media from both the Google and Amazon. This will (in addition to the better specs of the Nexus 7) increase the number of tablets out there, and will, as a result, increase total sales. As a result, Amazon could easily find itself selling more media and apps as a result of Nexus 7; it could even get out of the tablet market itself, and move those resources to their real profit center.

So what does Google get out of this? Well, it will increase it's revenue from media and apps, but it will also create a much larger market for tablet-specific apps.

This is where Google is aiming at Apple from. In review after review, the one clear advantage reviewers point out Apple has over Android in tablets is the number of tablet-optimized apps. The Nexus 7 is the key to equalizing this advantage. It will also drive other Amazon and other "low end" tablet manufacturers to move quickly to Jelly Bean, or into other markets (which is simplified the by introduction of the new Accessory Development Kits), rather than continue to build tablets based on earlier Android versions. This leaves them with motivation to move tablet support forward while reducing the incentive to fragment Android going forward. New accessories and new apps -- both designed for Jelly Bean-based tablets, will in turn encourage other high end tablet manufacturers to minimize fragmentation so as to take advantage of the growing Jelly Bean/tablet ecosystem.

It is a bold and brilliant move by Google, and may solve fragmentation and "app gap" problems Google has in competing with Apple, and without resorting to heavy-handed limitations on the Android software, hardware, or consumer communities.
User Rank: Apprentice
6/29/2012 | 5:46:22 PM
re: Google Nexus 7 Tablet Aims For Amazon, Not Apple
"Google Nexus 7 Tablet Aims For Amazon, Not Apple
Agreed. So please don't fall into the trap of making any significant comparison with iPad. What I will say is that this device may considerable make buyers think about whether they need a more expensive iPad, Surface RT, or Android tablet. It may very well drive down the prices that those companies can charge for their devices.
User Rank: Apprentice
6/28/2012 | 2:39:33 AM
re: Google Nexus 7 Tablet Aims For Amazon, Not Apple
Honestly, it really could be an iPad killer if it wanted, it really is an awesome tablet....+, it's a fraction of what the iPad actually costs!!

The Agile Archive
The Agile Archive
When it comes to managing data, donít look at backup and archiving systems as burdens and cost centers. A well-designed archive can enhance data protection and restores, ease search and e-discovery efforts, and save money by intelligently moving data from expensive primary storage systems.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.