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Friday, April 13, 2012, 02:35 am
Google 'quite focused' on low-end Android tablets as iPad controls high end
Google CEO Larry Page said on Thursday that his company is "quite focused" on reaching the lower end of the tablet market, even as Apple's iPad continues to dominate the high-end price range.The Mountain View, Calif., company announced on Thursday its earnings for the first quarter of 2012, reporting revenue of $10.65 billion and income of $3.39 billion. The search giant also announced a 2-for-1 stock split intended to preserve the company's "founder-led "approach."
During a question and answer session on Google's quarterly results conference call, Page fielded a question about the company's strategy for Android tablets, as transcribed by Seeking Alpha.
"I think there's a number of Android tablets out there and obviously, we have strong competition there as well," he said in what appeared to be a vague reference to Apple's iPad.
"Obviously, there's been a lot of success on some lower-priced tablets that run Android, maybe not the full Google version of Android. But we definitely believe that there's going to be a lot of success at the lower end of the market as well with lower-priced products that will be very significant. And it's definitely an area we think is important and we're quite focused on."
After seeing little success competing with Apple in the $499 and above price range, many tablet vendors have changed tactics to compete on price. For instance, Samsung made some adjustments in order to set the price on the 7-inch Galaxy Tab 2 at $250. The Korean electronics maker will face competition in the low-end market from Amazon's $199 Kindle Fire, one of the few non-Apple tablets to achieve volume sales. Barnes & Noble also occupies the budget tablet space with its $250 Nook Tablet.
Google has just a couple months left to deliver on its promise to release a "tablet of the highest quality." Chairman Eric Schmidt said four months ago that the company would put out such a device within six months.
Recent forecasts have estimated Apple's tablet market share will remain above 60 percent throughout 2012. Research firm Gartner expects Apple to retain control of the market through at least 2016.
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Previous Comments View All
Google realizes that it's not a tablet market but an iPad market at the high end and retail market can only be found at the low end. Watch out for Google to leverage their Android OS to squeeze out the competition much like Microsoft did with its competitors in the 80s and 90s.
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It's interesting how the iPad is suddenly considered the "high-end" when not even the cheap-junk manufacturers could come out with their own similar-size tablet at a lower price-point.
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Yeah... If Apple's products can be considered as high end (yes, they are), imagine IF Apple to set an even lower price for perhaps, smaller screen size iPad. Soon, they will give these Androids for free.
They probably have already.
Google realizes that it's not a tablet market but an iPad market at the high end and retail market can only be found at the low end. Watch out for Google to leverage their Android OS to squeeze out the competition much like Microsoft did with its competitors in the 80s and 90s.
What can Google do to leverage... they are already giving the OS away? I think a good shoot-out at the bottom end will make manufacturers turn out some real crap. When it's all over the general public will have had their little fling with owning a pice of junk, sober up, and buy an Apple iPad.
I remember the electric typewriter battles of the 1970s and 1980s. The IBM Selectric was king and sold for over $1000. No one ever unseated them, finally IBM saw the end of the typewriter market coming and sold out to Lexmark for a huge bundle. They did the same with the PCs when they saw that market turning to crapola and made a bundle selling that off to Levenco.
Back on the typewriter story, IBM held their dominance in the electric typewriters for around 30 years by (1) incremental improvements, (2) major improvements (3) leading with features that were protected with patents, (4) having an aura of quality and desirability that none of the competitors could wrap around themselves, (5) maintaining a high degree of customer service, and finally, they owned the high end of the market where all the high margins were.
It's interesting how Apple has been able to duplicate that so well today.
Yeah Google, continue to aim at the end of the barrel. This is called real loser leadership.
Jeez, Page is destroying everything Erich Schmitt built.
Yeah Google, continue to aim at the end of the barrel. This is called real loser leadership.
Jeez, Page is destroying everything Erich Schmitt built.
Everything that Eric Schmidt built?
Now that's a laugh...
LOL.
Android tablets couldn't compete with the force of the iPad.
Google is now claiming low-end vs. high-end tablets.
Whatever happened to the phrase: "iPad killer". There were several of them that were over hyped. Yet they couldn't compete with iPad, hence "low-end." Or substandard quality.
without a subsidizing model for tablets, the tablet market will be more like the mp3 player market.
Many have foolishly challenged the iPad so far, and all have failed, spectacularly miserably in most cases. When it came time to separate the men from the boys and the amateurs from the pros, nobody was left standing next to the mighty Apple, who crushed the competition like the little ants and peasants that they are.
This is like an admission of defeat from Google. They're basically saying that they have zero chance at competing with the iPad, so they're going to focus their efforts towards making low end junk for low end people. The low end market is already saturated with many different tablets and Google's tablet will simply be another low end Android tablet in a sea of low end Android tablets.
And since when is a $500 device considered high end? This is not Somalia.
Look for the iPad 2 to hang around and drop to $199 for 16gb in an answer to the "low end" android junk. This aggression will not stand, man.
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You keep focusing on that "low end" buddies. Look how well those netbooks did.
It's interesting how the iPad is suddenly considered the "high-end" when not even the cheap-junk manufacturers could come out with their own similar-size tablet at a lower price-point.
So now Google is simply saying "We'll make junk like the netbooks were at prices that will keep us at the bottom of the barrel."
Jeez, folks just don't learn.