Brian White, the financial analyst of Topeka Capital Markets, has predicted that 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 opines that the Nexus 7 is “just another Android-based tablet.”
Google recently unveiled its $199 Nexus 7 tablet Google I/O developer conference. Google has created this tablet with Asus as its partner. The device, features a quad-core Central Processing Unit (CPU) by Nvidia and a 1,280×800 pixel display. It will go on sale in July.
In response to the announcement, a note written to investors by White “no threat here”. As a reference, he pointed towards Google’s first Android-based hardware initiative, the Nexus One. He said that Nexus One met with “muted enthusiasm.” He continued:
“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 Amazon’s Kindle Fire was more likely to be a competitor with Nexus 7. That is because both devices have similar specs and they share the same price point. It was previously mentioned by Google that they aimed to introduce 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”. 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 is likely that Apple would not 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 were extremely low. He said:
“When it gets sold through the (Google) Play store, there’s no margin. It just basically gets (sold) through.”
On the basis of previous IDC projections, the iPad is on route to take back market share from Android this year as well. Topeka Capital Markets maintains its price target of $1,111 for shares of Apple with a rating of “Buy.”