Analyst: Amazon, not Apple, should worry about Google’s tiny screen Nexus 7 tablet

Tiernan Ray reports for Barron’s, “At least one Street analyst had a brief review of the Nexus 7 this afternoon as it pertains to Apple’s iPad. Brian White of Topeka Capital Markets, who rates Apple shares a Buy, with a $1,111 price target, thinks Apple has little to worry about.”

We believe an “iPad Mini” could be released this September at a price point of $250- $300, providing a more cost competitive product for Apple and opening up a new market segment. The resolution (1280-800) of the Nexus 7 does not compare to the new iPad (2048-1536) with Retina display, while the new tablet is only available in Wi-Fi versus 4G and Wi-Fi for the iPad. Essentially, we believe the Nexus 7 is more of a competitor with the Kindle Fire, rather than the iPad. Google also introduced a new product called Nexus Q for $299 (ships in July), a small Android computer-like device (i.e., a “cloud connected juke- box”) that plays music and is always connected to the cloud. – Brian White, Topeka Capital Markets

Read more in the full article here.

MacDailyNews Take: Let the battle for Apple’s iPad table scraps commence!

(Between a search engine and an online retailer, no less. Why either of them wants the lowest common denominator demographic that doesn’t have/spend any money defies logic, but there you have it.)

Sleep tight, Bozo… er, Bezos.

Related articles:
Wealthy smartphone users more likely to have iPhones; less likely to play games, tweet – April 2, 2012
Mac users are more fashionable than Windows PC sufferers – March 1, 2012
Study: iPad users more likely to buy – and buy more – online than traditional PC users – September 29, 2011
iPhone users smarter, richer, less conservative than Android phone users – August 16, 2011
Apple iPhone users spend significantly more on their credit cards than non-iPhone users – November 5, 2010
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009
Nielsen: Mac users are better educated and make more money than PC users – July 12, 2002

Google sells tiny screen tablet aimed at Amazon’s tiny screen Kindle Fire – June 27, 2012
Google ‘Nexus 7′ tablet ships in July with Tegra 3, 7-inch display, $199 for 8GB, $249 for 16GB (with video) – June 27, 2012
Apple’s revolutionary iPad widens lead as tablet sales surge – June 15, 2012
Apple’s massive domination of tablet market unabated as Amazon’s tiny screen Kindle Fire demand tumbles – June 5, 2012
Apple’s iPad remains dominant in Q112 while Amazon’s tiny screen Kindle Fire fizzles – June 4, 2012
Amazon’s tiny screen Kindle Fire shipments have dropped off a cliff – May 9, 2012
Amazon’s Kindle Fire shipments fizzle to anemic 4% market share – May 4, 2012

16 Comments

  1. A used original iPad would be a far better buy than 7″ gadget that is only for media consumption. Why do people waste their money on crap like this (both making and buying)?

  2. I don’t think Amazon has much to worry about (not like they are setting the world on *ahem* fire with their tablet anyway). Google does not have the same rabidly loyal shoppers that Amazon does, nor is their content ecosystem anywhere near what Amazon has.

    I’m honestly not sure what Google thinks it is going to do here besides piss off the other 7″ Android tablet makers (other than Amazon)…

    There can’t be much margin (if any) in a $199 tablet, and they have an uphill battle to make their store a profit center.

    1. Agreed. Just like MSFT Onborned the current Windows phone vendors, doesn’t this do the same for the current vendors with ICS and earlier tablets? Undercuts Samsung 7 inch Tab on PX. Lenova, Toshiba, etc.

  3. As market share indicates, there are plenty of Android phone users. These people have already shown a preference for Android, whether it be price, perception of openness, or real desire to tweak the OS. Those people will be predisposed to buy a “reference” Google tablet for the sole reason that it fits within their chosen ecosystem. IF there is a good Kindle tablet app that looks and operates well on Jellybean, then Fire and other small Android tablets are definitely in trouble. Apple fans and iPhone users won’t consider it. Why would they? It would be the odd man out in their Apple ecosystem.

    1. Let’s not forget that the largest part of the Android PHONE success is due to the carriers – carriers that didn’t have the iPhone and were desperate to push any thing they could that was in any similar. As the iPhone has become available on more carriers, it has overtaken Android sales at those carriers (at least in the US)

      Android itself is not the attraction – witness the lack of success in the Android tablet market.

      I’m not sure how attractive a genuine Google Android tablet will be the Android phone users

  4. The 7″ market isn’t even table scraps.

    Amazon LOSES money with each Amazon Kindle Fire sale. The only way Amazon make money is when users buy Amazon stuff with it. If that works for them, great. But it’s a cheap crap Android OtherPad that has not caught on and has (at a guess) been one of the biggest after-Christmas-returns in history. IOW, the Fire is a flop. The 7″ market is a flop.

    Have fun with that Google. (o_0)

    1. Every time I went to Amazon they use to show me all kinds of stuff that I forgot I even wanted. Their intelligent selection customized for each person is that what made Amazon a LOT of money.

      Now all I ever see when I go to Amazon is Kindle, Kindle, Kindle. Which I am not interested in and not spending my money on.

      I wonder how much money Amazon is loosing by waisting all that prime web space on the Kindle?

    1. iPod touch fits in pretty much any pocket. A 7″ tablet is too big for most pockets and too small to be really useful. It is compromised into near uselessness.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.