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  • Analyst Claims Google's Nexus 7 is "No Threat" for Apple's iPad


    According to financial analyst Brian White of Topeka Capital Markets, Apple’s iPad has little to worry about when it comes to losing its top spot on the tablet market due to Google’s newly-announced Nexus 7. White believes that the Nexus 7 is “just another Android-based tablet.”

    Google recently unveiled its $199 Nexus 7 tablet, a result of its partnership with Asus, at its Google I/O developer conference. The device, which features a quad-core CPU by Nvidia and a 1,280x800 pixel display, will go on sale starting in July.

    White’s note to investors said that there was “no threat here” to the iPad from the device, in response to the announcement. As a reference, he pointed towards Google’s first Android-based hardware initiative, the Nexus One, which he said was met with “muted enthusiasm.” He went on to say that “the combination of Apple’s expanding digital grid, innovative design, unmatched aesthetics, leading App availability (with 225,000 native iPad apps), intuitive user interface and expanding technology innovations will continue to keep the company on top of the tablet for many years to come.”

    Furthermore, it was noted that the Nexus 7 is more likely to compete with Amazon’s Kindle Fire as both devices have similar specs and share the same price point. It was previously mentioned by Google that they had their sight set on the low-end of the tablet market, which is an area that Amazon took the lead in late last year with the release of the Kindle Fire. Android chief Andy Rubin told All Things D just recently that the company went “from zero to working product in four months” and Asus chairman, Jonney Shih said that his engineers mentioned that the project was “like torture” claiming that the engineers brought up that Google “asks [for] a lot.” According to Shih, the Nexus 7 team was split up around the globe and had a 24-hour development cycle.

    It’s likely that Apple won’t have to worry about the Nexus 7 eating away at its profit share as Rubin admitted that Google’s own profit margins for the device are extremely low. “When it gets sold through the (Google) Play store, there’s no margin,” he said. “It just basically gets (sold) through.” Based on previous IDC projections, the iPad is on route to take back market share from Android this year as well and Topeka Capital Markets maintains its price target of $1,111 for shares of Apple with a rating of “Buy.”

    Source: AllThingsD, AppleInsider
    This article was originally published in forum thread: Analyst Claims Google's Nexus 7 is "No Threat" for Apple's iPad started by Akshay Masand View original post
    Comments 16 Comments
    1. ayeyobro's Avatar
      ayeyobro -
      Still gonna buy one of these at $200 this would be stupid to not buy.
    1. rocky5's Avatar
      rocky5 -
      Let me see, I could lug my iPad 2 about or pay less than half the price for a new one & get this little gem for out & about, or for my misses she would be more than happy with this, as she's a Facebook junky lol
    1. kidjudge's Avatar
      kidjudge -
      Apple is not going to admit that it will impact their sales not all people can afford a 499.00 Ipad hmmm 199 sounds alot better
    1. steve-z17's Avatar
      steve-z17 -
      I don't think this was meant to challenge the iPad so much as it was the Kindle Fire. If Google wanted to challenge the iPad they would have come out with something bigger, better, and more expensive. I really like this Nexus 7 though, great price for an awesome device
    1. sziklassy's Avatar
      sziklassy -
      The price is great, no doubt. I just wish there was an option for more storage and perhaps 3g/4G data. The times I find tablets most useful is when I am traveling, and it can often be a PITA to find public wifi some places.
    1. peacedog's Avatar
      peacedog -
      It's not a threat to iPad. It's a threat to Kindle Fire. Same price, but better specs. May be a threat to iPod Touch -- also starting at $200.
    1. unison999's Avatar
      unison999 -
      Considering unjustified rumors can affect a company's stock price let alone a competing tablet, an analyst says there is "no threat" only means:
      1. He is extremely dumb because no matter what it will take some some share of the market, even small percentage it is still a threat. Bringing a knife to a gun fight, it is still a weapon. When bullets run out that knife will look extremely good.
      2. He is worried that there will be a panic sell and he can not get his people out quick enough, this way he can keep people calm while he slowly sell off his.
    1. Mrteacup's Avatar
      Mrteacup -
      the ipad and nexus are competing for two different markets and appealing for two different audiences. theres pretty much one reason someone hasnt bought an ipad if they want a tablet, its money. Anyone that can afford an ipad has already got one and the other competitors realize that. They cant exactly attack the ipad market with an expensive big tablet when most people already have an ipad and dont want to make a second purchase on another expensive tablet. So google and microsoft are smart to focus on the customers who cant afford an ipad or have already bought an ipad but want another tablet but dont want to spend another 500. this is definitely not a threat to apple
    1. parahelium's Avatar
      parahelium -
      well... I already have ipad2, I just ordered the nexus 7. I will now skip the next generation ipad and wait for another generation if its worth it.
    1. Dazz187s's Avatar
      Dazz187s -
      That tablet looks kinda apple.
    1. JedixJarf's Avatar
      JedixJarf -
      Quote Originally Posted by parahelium View Post
      well... I already have ipad2, I just ordered the nexus 7. I will now skip the next generation ipad and wait for another generation if its worth it.
      Ive got a xoom 2 right now and just preordered

      Really tired of honeycomb.
    1. Breezer23's Avatar
      Breezer23 -
      Quote Originally Posted by Dazz187s View Post
      That tablet looks kinda apple.
      Was it due to the fact it was rectangular with a screen on it?

      I look forward to it though I am a bit disappointed that they did not include a MicroSD card slot. These are killer specs and will likely match if not beat the iPad3 performance wise. The Jelly Bean OS is supposedly a HUGE leap forward in regards to smoothness of the OS. Should be interesting.
    1. buggsy2's Avatar
      buggsy2 -
      Duh. Can I get paid to state the obvious? Nexus competes with other Android tablets, including the Kindle Fire. Rightly or wrongly the iPad has created its own world and market space.
    1. iLoveWindows&iPhone's Avatar
      iLoveWindows&iPhone -
      Quote Originally Posted by buggsy2 View Post
      Duh. Can I get paid to state the obvious? Nexus competes with other Android tablets, including the Kindle Fire. Rightly or wrongly the iPad has created its own world and market space.
      This is true, the iPad IS in its own realm.

      But what about the people who can't afford it? The ones who have been waiting for the iPad to go down in price, or buy a used one on eBay or other reseller?

      These people now have the option of buying a brand new device, one with more power and a much lower price tag (talking about older model iPads...so don't freak out guys).

      What about those rich little 6 year old brats you see watching nickelodeon and playing games on a iPad at dinner, while every other kid their age is getting yelled at if they put their elbows on the table? I bet a lot of those parents would much rather spend half the money for their crappy kids!

      I'm not saying this is going to destroy Apple, or make a massive impact on iPad sales....but I do think it will have a impact. I think it's pretty ignorant to think that it wouldn't.
    1. buggsy2's Avatar
      buggsy2 -
      Quote Originally Posted by iLoveWindows&iPhone View Post
      This is true, the iPad IS in its own realm.

      But what about the people who can't afford it? The ones who have been waiting for the iPad to go down in price, or buy a used one on eBay or other reseller?

      These people now have the option of buying a brand new device, one with more power and a much lower price tag (talking about older model iPads...so don't freak out guys).
      Yeah, so what? There have been Android tablets for a few years, this is just another one. This one will take no more market away from the iPad than all the others, which is to say, not much.
    1. Jorkus's Avatar
      Jorkus -
      As nice of a Device it is, I doubt it will make a dent in the iPad market. If you're looking for a nice tablet at a very reasonable price (and by reasonable, I mean google is breaking even by selling it in the short term) and you're not looking for a high end tablet, then this is what you want. But we all know that a 10" retina screen with the guts to perform the way we like Is why we pay a premium for our iPad.

      Maybe the Microsoft surface will get it right and finally move in on apples turf. Windows is a familiar OS and Microsoft have the money to do it right. But they still don't even plan on incorporating a retina screen, which is a huge draw for me. Google is going to have to make their money outside of their hardware sales, and being that apple is already selling their hardware at a premium, even if google undercuts them and releases a bigger tablet, apple can just drop the price of their iPads and keep making money without apps.

      Still this competition is good news for consumers.