Nexus 7 Faces Multiple Barriers to Sustainable Growth

 
 
By Don Reisinger  |  Posted 2012-07-24 Email Print this article Print
 
 
 
 
 
 
 


5. Stiff competition in the smaller tablet market

The issue for Google is that in the smaller tablet space, there's stiff competition. From Amazon to Barnes & Noble to even Vizio, a host of companies are delivering very similar devices at prices that match the Nexus 7. Simply put, it'll be hard€”especially over the next few months after hype dies down€”for the Nexus 7 to differentiate itself. 

6. Android

Android is a fine operating system that a lot people are using, but that doesn't necessarily mean that it'll be the top option in the tablet market. Today's consumers still care much more about iOS than any other platform. That is another issue the Nexus 7 can't overcome. 

7. Does Google want to be a hardware company?

Google is offering hardware now, but let's not forget that the Nexus 7 was built by Asus. And so far, there has been no indication that the search giant wants to be in the hardware market. Google is about software, search and advertising. Unless it focuses much of its cash and efforts on hardware, the Nexus 7 won't be dominant. True dominance takes time and dedication. 

8. The next Kindle Fire is coming

Google's chief competitor in the 7-inch tablet market is the Amazon Kindle Fire. So far, Google is beating that device because the Kindle Fire design is nearly a year old. But Amazon is reportedly planning on releasing a new version of the device in the coming weeks. Once that happens, all bets are off. 

9. The barriers to entry are low

As Google itself showed, the barriers to entry in the low-end tablet market are low. A company with a good design and some cash can enter the space with a respectable tablet and grab some market share. What makes anyone think that the Nexus 7 would be any different? 

10. A single device won't do it

Dominance in the tablet market, especially for an Android-based product, is not possible without offering multiple devices. Apple's iPad is such a juggernaut that not having a cheaper, smaller version, as well as a more expensive larger model available to customers would be a major mistake. Simply put, a single tablet just won't cut it in today's tablet market. 

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Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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