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Google (GOOG) plans to roll out a branded tablet later this year to be priced at $150,...
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Wednesday, March 28, 2012, 8:58 AM ETGoogle (GOOG) plans to roll out a branded tablet later this year to be priced at $150, NY Post reports, undercutting the $199 price of Amazon's Kindle Fire. “It will cost more to build than it will sell for, which means Google will pay a heavy subsidy for its tablet,” an ITG analyst says. “There is no choice but to do that, if Google wants to compete.” GOOG +0.6% premarket. (previously)
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This news story has 2 comments:
Here's how I see it:
Apple: sells hardware and designs a software solution around it. Needs margins on hardware.
Amazon: sells kindle as a means to drive traffic to its far better margin products as well as directing traffic to its website which is the source of its business. Not focused on margins on its tablet.
Google: using Android OS as a means to increase... ad revenues and keep folks in its ecosystem. Strategy: Losing a dollar on a tablet to make 20 in ad revenues by bringing users into its ecosystem. Doesn't need margin on hardware.