Google Nexus 7: A Missile Aimed Directly at Amazon’s Kindle Fire - harperwinfory49

When Google rolled out the specs of its new-sprung Nexus 7 tab Wednesday at Google I/O, I was affected. Excursus from a few limitations, it looked like a pretty deluxe piece of gear. Then I heard the $200 price rag, and all of a sudden things didn't add up. When you look at the specs of the spick-and-span Nexus 7 pad of paper, you can't help but point out a disconnect between the technology jam-packed into that little package and the $200 that Google is asking for it. The Link 7 has some reasonably expensive-looking technology inside IT–a high-definition reveal, multicore processors, and more.

Losing to Win

It's very prospective that Google is selling the Asus-built Link 7 for less than IT cost to stimulate it. That means that Google wish be subsidizing the be of each one IT sells. "I don't think they are making money on this," says IDC analyst Tom Mainelli. "If they are smart, they sustain set up the supply chain in such a way that they break steady."

But my guess is that merchandising the Nexus 7 for anything to a lesser extent than $300 precludes any possibility of breaking even. The true amount that Google is subsidizing the Nexus 7 is something that no one other than Google and Asus will promising ever have it away. Then wherefore would Google come kayoed with a fancy new tab it knows testament not turn a profit?

Taking Binding Mechanical man

Mainelli explains that Amazon River made-up an extraordinarily inexpensive but not very functional tablet–the Kindle Go off–in part by using a highly modified and limited version of the Android OS. And the Kindle Fire has sold same, very well.

Google, Mainelli believes, wants to "return" the Humanoid OS from Amazon, meaning that IT wants consumers to bed and expect the live of using full-blown Android (in this case, the new Gelatin Bean version) on a lozenge. And it seems apparent that the Link is much more like using a real computer than the Arouse Fire is. The whole understanding Mechanical man was created primarily was to point phone and tablet users toward Google content and services, Mainelli pointed out.

Amazon subverted that project by using Android to great power a device designed to consume content and services bought only from Virago. Google's best defense against that was to create a wagerer tablet with a better user experience at the same price point as the Fire. That's the Nexus 7.

Content-Consuming Devices

"Google is trying to demonstrate to its partners how to make a pad of paper that is affordable, yet cram full-featured and able to display content in an winsome way," Mainelli says. Link 7 users, Google hopes, will constantly buy their content and apps from the Google Play store. Admittedly, this looked like a pretty appealing proposition in the demonstrations we saw Wednesday at the Google I/O conference.

Looking at the recent lozenge announcements from Microsoft (the Surface) and Google, one could draw the conclusion that Apple's strategy of merchandising hardware and the self-satisfied and apps that run along IT is winning the day.

Apple, Google, and Microsoft want to sell you a device (in this case, a tablet) that is tightly coupled to their own content store (Apple Store, Google Play, Windows Live), and that displays the books, music, apps, and movies bought at the put in beautifully and seamlessly. The device, of course, can also suggest relevant subject matter, and sell it to you with just a few clicks. And these companies seem more and more willing to sell the devices for less money, in hopes that they can make their money back by merchandising very much of content finished the device.

There's also the issue of judgement share and momentum. Google wants both consumers and content creators to get aflutter more or less Android over again. When consumers draw excited, they buy more tablets and content. Only consumers will only get excited if they can buy from a beamy selection of apps and other content from the store that serves the device. Soh it's very important that Google get developers and cognitive content partners fired up about Android as fountainhead. "Google of necessity to sustain enough people into the ecosystem, so they'll sacrifice making money on the hardware to make sure that there are enough native Android tablets in the world to power their own ecosystem," Mainelli says.

Better Android Tablets

That excitement has not happened for the group of Android tablets on the market now. A big office of wherefore Android tablets have failed is because they have been priced too expensively aside Google's hardware partners, Mainelli points impermissible.

The Nexus 7 is powered by the new Android 4.1 "Gelatin Bean" OS.

Google may be stressful to demonstrate to its partners the mix of functionality and lowset monetary value needed to get people excited about Mechanical man tablets.

The same thing might be said just about Microsoft: It could well have had an OEM partner like Nokia fabricate the Surface, but it chose to set back the design and pricing standard to which prospective Windows 8 tablets must adhere. "Both Microsoft and Google are instantly selling their own tablets," Mainelli says. "They are basically saying to their hardware partners "You guys aren't doing it right; this is how information technology's done." Google's willingness to subsidize the Link 7 is proof that there's a good deal at stake for the company here. Only if anybody has the deep pockets needed for so much a "turn a loss-to-win" scheme, it's Google.