google to sell second gen nexus 7 tablet from july sources

TAIPEI |
Wed Apr 3, 2013 2:13pm EDT

TAIPEI (Reuters) – Google Inc will launch a advanced version of its Nexus 7 tablet powered by Qualcomm Inc’s Snapdragon processor around July, two sources told Reuters, as the software giant pushes deeper into the cut-price moving hardware marketplace.

Google is aiming to ship as abounding as eight million of the Asustek-fabricated tablets in the second half of the year, throwing down the gauntlet to other low-borderline tablets such as Amazon.com Inc’s Torch Blaze and Apple Inc’s iPad mini, the sources with adeptness of the advanced product said.

This is the aboriginal age details about the timing and sales targets for Google’s advanced tablet accept been unveiled, although the company has not publicly released any advice.

Google, which gets almost all of its revenue from online advertising, wants the aggressively priced Nexus tablets to be a hit as added Nexus users would beggarly added exposure for Google’s ads.

The latest version will accept a higher screen resolution, a thinner bezel architecture and adopt Qualcomm’s chip in abode of Nvidia Corp’s Tegra 3, which was used in the aboriginal Nexus 7s released last year, the sources said, declining to be identified as they are not authorized to speak to the media.

In a blow to Nvidia, Google weighed both U.S. chipmakers’ processors but finally decided on Qualcomm’s for adeptness reasons, one of the sources added.

Qualcomm and Nvidia are competing aggressively in the tablet marketplace as they seek to expand from their traditional strongholds of cellphones and PCs respectively.

A Google spokesman declined to comment on its advanced tablet. Qualcomm and Nvidia again declined to respond to questions.

Google and other traditionally non-hardware companies according to Amazon and Microsoft Corp accept begun manufacture inroads into moving devices as consumers increasingly access the Interlacing on the action.

Google introduced its aboriginal tablet last June, hoping to replicate its smartphone accomplishment in a hotly contested marketplace any more dominated by Torch Blaze and iPad.

The Nexus 7 joined the ranks of smaller, 7-inch tablets popularized by Amazon and Samsung Electronics, among others.

Pricing is yet to be curved and Google’s plans are fluid, the sources said. Marketplace baton Apple is expected to launch advanced iPads this year as able-bodied, possibly forcing its competitors to chicken feed their assumptions.

Google may choose to sell the advanced gadget for $199, the selfsame as the aboriginal begetting rolled out last June, while the aged model may be discounted, one of the sources said. Alternatively, the advanced tablet could be priced added competitively at $149 and the previous model discontinued, the source added.

The cheapest iPad mini goes for added than $300.

CORE STRENGTHS

Though pricing has not been finalized, discounting could play to Google’s and Amazon’s strengths by getting cheaper hardware into added consumers’ hands to drive revenue from their core Internet-based businesses.

“This is the ‘aught edge strategy’,” said Fubon Securities analyst Arthur Liao. “Ninety-seven percent of Google’s revenue comes from advertisement, so it needs to sell added moving devices in adjustment to grasp added consumers.”

The Internet search giant, which has never disclosed tablet sales, plans to ship six to eight million of the advanced Nexus 7s in the second half of this year, the sources said. That compares to an estimated 4.6 million Nexus 7s sold in the selfsame period last year, according to Enders Analysis moving industry analyst Benedict Evans.

The ample volume could advice to accelerate adding to of tablet-specific applications for its Android operating software.

Asustek, a netbook PC settler, will abide to co-brand with Google on the advanced Nexus 7. The Taiwanese company has said it aims to ship over 12 million tablets this year, almost twin last year’s shipments.

Asustek could not be reached for comment.

(Supplementary reporting by Edwin Chan and Alexei Oreskovic in San Francisco; Editing by Stephen Coates)

Google to sell second-gen Nexus 7 tablet from July: sources
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Originall posted April 4, 2013