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Google reportedly planning to launch $99 Nexus 7 by end of 2012

post #1 of 137
Thread Starter 
The race to offer the lowest-priced tablet on the market is rumored to reach a new level later this year, with Google reportedly planning to release a $99 Nexus 7 tablet.

Google is said to be working with Asustek on two new versions of its Nexus 7 tablet, according to DigiTimes. The new models are expected to be thinner and will utilize panels made by HannStar display, sources told the industry publication.

"One of the models will be priced at US$199 while the other will be priced at US$99, and both models are expected to hit markets by the end of 2012," the report said.

Google's rumored sub-$100 tablet is said to be in anticipation of Apple's so-called "iPad mini." The company is expected to hold an event in October to introduce a new, smaller 7.85-inch iPad model.

If Google does release a new, less expensive Nexus 7 model this year, its debut would come only a few months after the launch of the $199 8-gigabyte Nexus 7. Google's low-priced tablet was seen as a response to the Amazon Kindle Fire, which reached that same price point last year while forking the open-source Android operating system to create Amazon's own separate platform.

Nexus 4


Amazon responded to the Nexus 7 by undercutting its price with a new low-end model for $159 which debuted earlier this month. The expanded Kindle Fire lineup goes as high as the $499 price point with an "HD" model that features integrated 4G LTE support and offers $50/year, 250-megabyte-per-month data plans.

Just this week, Barnes & Noble also made a bigger push into the tablet space dominated by Apple's iPad as it introduced a new 9-inch Nook HD+. That device will be priced at $269 for a 16-gigabyte model, while the 7-inch Nook HD will cost $199 for an 8-gigabyte model.
post #2 of 137
Google's stupidity is exceeded only by Google's stupidity. They will lose money on every unit but make it up on volume.
post #3 of 137
The $99 version will be supported Google Ads. Time will tell if people will buy it.
post #4 of 137
Well, that will end any other Android tablet development.

I mean, what's the point?
post #5 of 137
Quote:
Originally Posted by msantti View Post

Well, that will end any other Android tablet development.
I mean, what's the point?

Domination. Google wants to control their devices and what's shown on them. This will be a perfect way to get as many out there and show ads everywhere possible.

Apple had me at scrolling
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Apple had me at scrolling
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post #6 of 137

This isn't a game of limbo.. I thought Google said they were already breaking even at $200. How can they trim off another $100? If true, this has to be at a loss.

post #7 of 137

The race to the bottom has just moved up a gear.
 

post #8 of 137
Google is effectively killing off any chance of Android hardware manufactures making any money in tablets. Namely, Samsung

If I were them, I would be fu***** pissed.

Google is looking out for itself...One giant funnel into search to drive their core business. It does not give a shit about its partners

The other shoe will drop in a few years when Apple replaces Google with Bing as the default search. Boom. In one move, Google loses half its mobile revenues

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #9 of 137
Quote:
Originally Posted by iVlad View Post

Domination. Google wants to control their devices and what's shown on them. This will be a perfect way to get as many out there and show ads everywhere possible.

Perhaps Google wants to drive everyone else out of the Android business. Would certainly be the ebst thing for Android.
post #10 of 137

A $99 Nexus tablet will fly off the shelves.

post #11 of 137
Quote:
Originally Posted by Xero910 View Post

This isn't a game of limbo.. I thought Google said they were already breaking even at $200. How can they trim off another $100? If true, this has to be at a loss.

I think it will be interesting to see if Apple can do a ~7.8" tablet for $250. They would own 100% of the profit in the small tablet space and they would be capping prices for the market. No one could ever charge more than that for a similar device.
post #12 of 137
This must be music to the ears of hardware manufacturers wanting to sell tablets. Reminds me of the zune strategy, compete with your own partners.
post #13 of 137
Quote:
Originally Posted by Red Oak View Post

The other shoe will drop in a few years when Apple replaces Google with Bing as the default search. Boom. In one move, Google loses half its mobile revenues
 

 

Not sure if that will happen. Bing isn't as good as Google. However, I would welcome the idea of Apple creating their own search engine. Search would likely help in the long run given they are doing Maps now too. They're more likely to use Bing than create their own, but it's a nice thought. :)

post #14 of 137

Well the tablet race to the bottom has certainly gone quicker than it did with the computer market. Not that Apple cares, if anything it differentiates them and marks them out as the premium niche which they love so much.

iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
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iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
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post #15 of 137
Quote:
Originally Posted by raymccrae View Post

This must be music to the ears of hardware manufacturers wanting to sell tablets. Reminds me of the zune strategy, compete with your own partners.

It's even 'better' than that. Google makes money on advertising, so they can sell the hardware for below cost while the hardware vendor has to make all their money on the hardware sale. So Google is competing with their OEMs and has an insurmountable advantage over them.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #16 of 137
I just bought a 7 inch tablet with a dual core CortexA9 1.5Ghz, dual GPU, 16Gb Memory and an IPS display for 109$ straight from a decent company in China.

I don't think they will be losing money.
post #17 of 137
Quote:
Originally Posted by Xero910 View Post

Not sure if that will happen. Bing isn't as good as Google. However, I would welcome the idea of Apple creating their own search engine. Search would likely help in the long run given they are doing Maps now too. They're more likely to use Bing than create their own, but it's a nice thought. 1smile.gif

Bing is a Microsoft owned search engine, so I highly doubt Apple would use them.
post #18 of 137

I'll wait for the $29 dollar tablet.

post #19 of 137

Maybe they can get a $99 tablet out the door if they put in a 5" crappier quality screen, slower memory and a crappier processor.

 

If Google loses money on every one, we should collectively go out, buy every single one, and return them unopened before the return period expires. lol.gif

post #20 of 137

Good for consumers.

 

I'm sure Apple won't join in the 'race to the bottom' on price, but continue to look to the quality end of the market. None-the-less some price pressure on Apple due to competition will not go amiss.

 

I don't mind paying for quality, but what really annoys me about Apple iPad prices is the premium charged for higher storage capacity. In the UK it's an extra £80 ($128) for a 32Gb iPad over a 16Gb one, when the difference in cost of parts is a few $. And it's to Apple's benefit to sell higher capacity devices - more room for sales of Apps and content through the App Store & in-App purchases.

post #21 of 137
Quote:
Originally Posted by Shidell View Post

A $99 Nexus tablet will fly off the shelves.

Yeah, and right into the dumpsters.
post #22 of 137

A $99 tablet is not going to lose money. People are way overestimating the cost of a tablet.

 

In fact, the biggest cost is just the touchscreen and the glass associated with it. A dual-core CPU is dirt cheap as well as 8GB memory. The cost of such 7" tablet could be as low as $50-60, as long as you strip away most of the ports/buttons, and use some cheap shell. The software is expensive to develop but in this case, it's 'free-riding' the software for other devices.

post #23 of 137
Companies who business model is not based on selling hardware but giving it away usually destroy those markets. If in fact a company can give away products at a loss and make it up with their other business, that shows you how much money they are making else where.

I find it interesting that people complain how much apple makes, but no one is complaining that Google is making far more from selling your personal information to the highest bidder and they do not pay you. They give you carpware for you to test for them and tell them all the things that do not work just so they can collect information about you.

The recent Toshiba ad "it is unethical to test unproven product on the public" is really pointing at Google in most cases these days.
Edited by Maestro64 - 9/27/12 at 9:59am
post #24 of 137
Quote:
Originally Posted by tomhayes View Post

I'll wait for the $29 dollar tablet.

You'll have to pay me $29 to buy an Android tablet. lol.gif

 

Anyway, this move by Google -- if true -- is great news for Apple: it will ensure that the Android tablet market is totally killed off.

post #25 of 137
And I Thought that Asustek was a high quality manufacturer... (well their Netbooks Withered on the vine...LOL)
post #26 of 137
Quote:
Originally Posted by kevt View Post

Good for consumers.

 

I'm sure Apple won't join in the 'race to the bottom' on price, but continue to look to the quality end of the market. None-the-less some price pressure on Apple due to competition will not go amiss.

 

I don't mind paying for quality, but what really annoys me about Apple iPad prices is the premium charged for higher storage capacity. In the UK it's an extra £80 ($128) for a 32Gb iPad over a 16Gb one, when the difference in cost of parts is a few $. And it's to Apple's benefit to sell higher capacity devices - more room for sales of Apps and content through the App Store & in-App purchases.


All manufacturers do this though. I assume it's to balance out their margins. What other way could they use as a price differentiator? Should they clock the processors different? It'd make things complicated for the buyer and their experience. They could just make one model "iPad 64GB" and price it close to the 32GB price, but that raises the price barrier to entry.

post #27 of 137
Ah good, Google showing its true colors. Cheap-skates as they are. Then again, the news comes from DigiTimes. Google just doesn't get it, do they?
I’d rather have a better product than a better price.
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I’d rather have a better product than a better price.
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post #28 of 137
Quote:
Originally Posted by AppleGreen View Post

Google's stupidity is exceeded only by Google's stupidity. They will lose money on every unit but make it up on volume.

They've been pretty successful for being so stupid. Much "smarter" companies have failed, and miserably. In fact there was a time that Apple wasn't so successful even tho their products were impressive and hardly given away.

melior diabolus quem scies
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melior diabolus quem scies
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post #29 of 137
Quote:
Originally Posted by PhilBoogie View Post

Ah good, Google showing its true colors. Cheap-skates as they are. Then again, the news comes from DigiTimes. 

I was about to mention that. Since when do AI forum members believe DigiTimes articles?

melior diabolus quem scies
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melior diabolus quem scies
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post #30 of 137

Congratulation Andy. You're about to make Android a commodity.

 

This will separate Apple from the rest.

post #31 of 137
Quote:
Originally Posted by smiffy31 View Post

The race to the bottom has just moved up a gear.
 

+1

 

This is the same game microsoft is playing, except microsoft is really inept (it's starting it's race at the top, and will wipe out all it's OEMs).

 

This will bifurcate the tablet market just like the phone market... the 'cheap' consumers of content (I want a portable web viewer and a couple free apps) will flock to the low 'almost free' tablets, and those that 'value' content and experience will continue to buy iPad.  Expect a 60-40 split with Android(amazon,nook, and every other eyeball grabbing corp) being the 60.  

 

It's a scorched earth policy now for Google and Microsoft,  They have to 'own' their ecosystem, and 'winning' to them is all about establishing a user population by spending money to buy them.    Eyeballs and CC#s are the game now,   And Apple and Amazon are the clear winners at the moment, and with Apple effectively controlling it's platform, Google and eventually, microsoft, need to give away hardware to catch up, which kills OEM partnerships and degrades the user experience (You won't see them give away an iPad quality device for $99).  

 

The silly thing is, that every one developing an app will also develop it for iOS, and with it's CHI guidelines, it will be easier to write and more effective than trying to write an app for 'Android' (at 3,4,5,6,7,8,10,11,14,19" at every possible geometry, and varying sound/touch/connection interconnection, and obtw, supporting from 2.2 to 4.1 versions),  So in the end, there will be no killer app for Android, as consumer grade apps  will be 'funded' by sales/use in the iOS space.  It will be really hard for Google get some 'stickiness' beyond the technophiles and apple haters.

post #32 of 137
Quote:
Originally Posted by Timbit View Post


Bing is a Microsoft owned search engine, so I highly doubt Apple would use them.

 

I agree it's unlikely, but remember the saying, "The enemy of my enemy is my friend."

post #33 of 137
Quote:
Originally Posted by OriginalG View Post
... but that raises the price barrier to entry.

Hello?

 

Econ 101 says that a higher price invites entry. How's it a barrier to entry?!

post #34 of 137
Quote:
Originally Posted by anantksundaram View Post

Hello?

 

Econ 101 says that a higher price invites entry. How's it a barrier to entry?!

 

Hi!


For competitors yes, but not for consumers buying Apple products. I'm saying Apple's advertisements always say "starting at...." if they only have one iPad model that will be one price, it will be higher than the current price of a 16GB iPad while keeping their margins.

post #35 of 137
Quote:
Originally Posted by drobforever View Post

A $99 tablet is not going to lose money. People are way overestimating the cost of a tablet.

 

In fact, the biggest cost is just the touchscreen and the glass associated with it. A dual-core CPU is dirt cheap as well as 8GB memory. The cost of such 7" tablet could be as low as $50-60, as long as you strip away most of the ports/buttons, and use some cheap shell. The software is expensive to develop but in this case, it's 'free-riding' the software for other devices.

'cheap shell'

'strip away ports'

'8gb'

'dual core (in a quad core world)'

 

 

You make me all itchy in anticipation.   Oh, and given your list, I'm assuming that we're not buying a battery life either ('thinner' will require a higher quality battery and/or some custombattery configuration).

 

You forget R&D, manufacturing costs, shipping, returns (defects or just dissatisfied users), marketing, retail costs (bodies at the cash register and the minimum margin the big box stores want).     I'm assuming at the moment (for the next 18 months, until Moore's Law kicks in), the base cost of the device likely around $150-$200 including all of those elements, to 'break even.'   And the last I saw, Google is not a 'not for profit' company.

post #36 of 137
MacLife gave the Nexus 7 an excellent review.

http://www.maclife.com/article/reviews/google_nexus_7_review
post #37 of 137

$99 to get a device to collect and track all your usage behaviour and help data mining? NO Thanks!

post #38 of 137
Originally Posted by Shidell View Post
A $99 Nexus tablet will fly off the shelves.

 

Into trash cans everywhere!

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #39 of 137
Quote:
Originally Posted by tomhayes View Post

I'll wait for the $29 dollar tablet.

Wait until google gives away their nexus 7 with $99 on top. 2014?
post #40 of 137

This is a dangerous game for Google! Apple is running from anything Google because they decided to play in the hardware space, other manufacturers will follow suit if Google continues to undercut them. It won't be just Maps either... search, mail, OS, etc. That will hurt in the long run!

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