Nexus 7 is half of the price of Apple iPad. Not really!
Well! If the cheaper iPad is used to go against the price of Nexus 7. Yet, this is not an Apple to Apple comparison. The LCD resolution of Nexus 7 is 1280x800 while that of iPad is 2048x1536. Nexus 7 does NOT support any cellular technology. iPad has a version that is equipped with cellular module. It cost $629. So, the comparison of Nexus 7 and iPad (WiFi only version) sounds about right. However, Nexus 7, according to specification, has equipped with a GPS; iPad (WiFi only version) doesn't. So, what're we comparing here?
I believe Google build Nexus 7 because of the inspiring of Amazon Kindle Fire. Kindle Fire has proven a market, the market of smaller tablet. It isn't just smaller. It has different form factor. Yet, the mobility isn't really important to certain extent. The tablet is just used in an indoor environment - home, cafe, library.
Google wouldn't just do a remake of Kindle Fire. It adds GPS in it. The addition of GPS makes Nexus 7 to be useful on the road. User can download apps that enable Nexus to show direction and map while it is not connected. Nexus 7 will come handy when you are traveling out of town. If you are walking around in Mountain View, CA, you definitely feel good holding a Nexus 7. Mountain View wouldn't be the only city. You will find Nexus 7 really useful in any city that has WiFi widely deployed.
There is no doubt that Google is trying to prove to the manufacturers that Android device can be built in a reasonably low cost. Nexus 7 may just be a reference design like Nexus One. The evolution of it will be up to vendors. How market is responding will be up to consumers.
I wouldn't say Google. I think the price is managed by the vendors - Motorola and Samsung. The conventional wisdom is if you can sell your product with the same price of competitor does, why bother lowering it. Apparently, they don't sell as well as the vendors hoped. Yet, do we know the reasons?
The design of iPad is elegant...no doubt about it. Having experienced the quality of the display of the new iPad at the store, I was very much tempted to buy it. If Apple does something to lower the price a bit, I think many looking for a low budget tablet will change their mind to stretch a bit more to grab an iPad.
That analogy doesnt make any sense in this context. Google(wanted to)and tried selling Android tablets at the same price as of iPad. (Xoom and Galaxy Tab). But nobody wanted to buy. Amazon found out the max amount people are willing to spend on a non iPad tablet is 199. And thats how Nexus 7 came into existence.
Well, having two Android tablets in our family my opinion is that these tablets did not "catch on" because Android sucks. We have Android 3.1 running on them and it clearly is not a debugged easy to use operating system. Maybe rev 4 will make the trick (our machines are probably not upgradable, but we shall see), but so far Google s FAR behind both Apple and Microsoft as far as operating systems go.
Well, Toyota's value proposition is not to be a cheaper BMW. They products with different features and capabilities and prices.
If the Nexus was the first product, would people say "The iPad's value proposition is to be a higher featured Nexus"?
For more than a decade, since the launch of the iPod, we've heard some say that the key to Apple's success is not the products themselves, but the ecosystem it created (itunes, etc.). Now it seems we will see what the Android ecosystem can do in this regard.
Believable, sure. It's also interesting: Nexus 7 costs less than half what an iPad does, and conventional wisdom is that a product that does most of what the leader does for less than half the price would be compelling. But Huang's argument is that emulating the iPad is not a smart idea. And here he says Nexus 7 goes further.