Google (GOOG) to Shake-Up Tablet Prices with Upcoming 7-Inch Device (AMZN) (AAPL)
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You knew it was coming. But, just how good and effective will it be?
Google (Nasdaq: GOOG) is reportedly working on a tablet PC which will a) probably run on Android, and b) cost under $200 per unit. Reports from the NY Post and Digitimes Wednesday suggest Google is collaborating with Taiwanese manufacturer Asustek Computer to launch a 7-inch tablet. The device could be launched in May or June of 2012. No other details about panel or chip suppliers.
Google will be able to compete more wholly with Amazon (Nasdaq: AMZN), also expected to launch a new series of its Kindle e-Reader very soon.
More than that, the competition between Google and Amazon is affecting the entire 7-inch tablet market. Other manufacturers like Asustek and Acer have been forced to slash prices on their portable 7-inch wares. With current gross margin in the 10 percent to 15 percent range per device, according to Digitimes, expect those to be chopped-down as 2012 moves along and new offerings are released.
By how much can Google undercut the competition? The Post has a speculative number of $150, 25 percent cheaper than Amazon's $199 price tag on its premium Kindle Fire offering. Barnes & Noble (NYSE: BKS) currently has its NOOK Color -- the most comparable device to what we're talking about -- priced at $169 for a new version, and less for a refurbished one.
By comparison, Apple's (Nasdaq: AAPL) base iPad starts at $499, though the iPad 2 entry price is now $100 lower at $399.
Google (Nasdaq: GOOG) is reportedly working on a tablet PC which will a) probably run on Android, and b) cost under $200 per unit. Reports from the NY Post and Digitimes Wednesday suggest Google is collaborating with Taiwanese manufacturer Asustek Computer to launch a 7-inch tablet. The device could be launched in May or June of 2012. No other details about panel or chip suppliers.
Google will be able to compete more wholly with Amazon (Nasdaq: AMZN), also expected to launch a new series of its Kindle e-Reader very soon.
More than that, the competition between Google and Amazon is affecting the entire 7-inch tablet market. Other manufacturers like Asustek and Acer have been forced to slash prices on their portable 7-inch wares. With current gross margin in the 10 percent to 15 percent range per device, according to Digitimes, expect those to be chopped-down as 2012 moves along and new offerings are released.
By how much can Google undercut the competition? The Post has a speculative number of $150, 25 percent cheaper than Amazon's $199 price tag on its premium Kindle Fire offering. Barnes & Noble (NYSE: BKS) currently has its NOOK Color -- the most comparable device to what we're talking about -- priced at $169 for a new version, and less for a refurbished one.
By comparison, Apple's (Nasdaq: AAPL) base iPad starts at $499, though the iPad 2 entry price is now $100 lower at $399.
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