Is Google’s Strategy To Sell 7-Inches Galaxy Nexus Tablet Unhealthy For Its Rivals ?

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Abhishek Singhhttp://dazeinfo.com
An Engineering Graduate, Fervent Industry Analyst, passionate about mobile, innovative technologies and Entrepreneurship.

I’m really obsessed with the price tag of Google’s Nexus 7-inches Tablet. Previously, I have described how Amazon is selling Kindle Fire Tablet $10 less than its actual price. It’s clear that selling of hardware is not Amazon’s primary business, but here, it’s strategy to bring users into physical retail store. On the contrary, Google is using more competitive hardware components in its Tablet than Kindle Fire and selling the device at the same price as Amazon is selling.

Last year, Amazon’s Kindle Fire was considered as Apple’s iPad Killer and really, it has proven itself in the market. In Q4 last year, Amazon succeeded to clinch Apple’s notable market share. Apparently, at present, users are more price-sensitive and eager to use media Tablet. That’s why; Kindle Fire has become a better option for these users. The scenario is changing, Kindle Fire is slogging away and it’s losing market share to iPad 2 and even Barns & Noble’s $199 Nook Tablet and $169 Nook Color are somehow able to grab Amazon’s Tablet market share. Apple reduced the price tag of its iPad 2 (starting from $399) after the launch of its next generation “Retina Display” Tablet in March of this year.

Now, Google’s Nexus Tablet is considered as one of the best among 7-inch Tablet category. It’s the first time when full-featured, no-compromise Tablet has been launched in the market for just $199. The Tablet could be considered as a big threat for Apple’s iPad. Kindle Fire uses a Smartphone OS (Android 2.3) supporting a large screen Smartphone experiences. However, it’s not a great experience for Tablet users; the Tablet does not facilitate user to access Google Play content and its application environment. In addition to these, users have always been criticizing Kindle Fire for physical buttons and others features which are absent in the device.

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Considering to Google Nexus 7 Tablet, it has  NVIDIA Tegra 3 quad- core processor, latest Jelly Bean OS, NFC and HD display, microphone, camera and full access to the Google Play Store. Indeed, the device is lucrative for Google, ASUS and NVIDIA, but it’s nightmare for Apple.

At present, the components that Google is using in its Tablet, on that basis, the device should be priced more than $300 as other manufacturers are offering. It’s pretty clear; Google is selling the device after subsidizing its price. For some instances, we suppose that the search engine giant is selling the device at break-even point. If so, then I have still a doubt, why so far other vendors have not teamed up with components manufacturers in order to minimize the price tag of their device. If it was possible, then obviously Motorola and Samsung could not charge so much for their Tablets.

If we aggregate the price of all components involved into kindle Fire, then it would almost $210. I think, the components included in the Google Nexus 7 Tablet should not be cost less than $300.

It’s well-known; Amazon has intention to bring users toward bricks and mortar retail shop, but why Google is selling the device at such nominal price tags. If Google has subsidized the device to entice users for its app store, services or platform, then I think, it’s ridiculous. However, it’s true that Android is still struggling to lure a significant number of users towards its ‘Tablet platform’, but it does not mean to stake huge on the device to lure the users towards the platform.

I accept, users are being attracted by the low-price media Tablet. If Google will sell the device somehow between $300 and $400 then it would be tough for the search engine giant to draw an attention of Apple fanatics.

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Here, Google’s target is to pull out users towards Android platform and trying to make platform as successful as iOS. At present, Apple’s iPad dominates the Tablet segment and no-competitors in the market are even near to the market share of the device. However, it might be a reason that Google has launched the device to draw up Apple’s market share. But this way, it’s really an unfair mean of competition.

Google Nexus 7 Tablet could be a great reprimand for its hardware partners. Indeed, it’s matter of consideration; however, I have already described how Google’s Nexus Tablet could jeopardize its hardware partners business. At present, Google is trying to make a mobile ecosystem around its platform like Apple. Undoubtedly, Nexus 7-inch Tablet is non-vulnerable than Apple’s iPad in any aspects.

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