Google’s current Nexus 7 tablet retails for $199 and $249, but if a recent report from Digitimes is correct, Google intends to launch an even cheaper Android tablet before the end of the year.
According to the report, Google and Asus are working on a new Nexus 7 tablet, and there will apparently be two models available, one which retails for $199 and one which retails for $99.
One of the models will be priced at US$199 while the other will be priced US$99, and both models are expected to hit markets by the end of 2012, added the sources
Of course, this is just a rumor at the moment, and considering Google doesn’t actually make very much money on its existing Nexus 7 tablets, we wonder how they could end up selling one for just $99.
Potential Market Impact
If Google does manage to release a $99 Nexus 7 tablet, it could significantly disrupt the tablet market. Currently, budget tablets are often associated with lower performance and build quality. However, a $99 Nexus 7 could change this perception by offering a high-quality device at an unprecedented price point. This move could force other manufacturers to lower their prices or improve their offerings to stay competitive.
Moreover, a $99 tablet could make technology more accessible to a broader audience. Students, for example, could benefit from affordable tablets for educational purposes. Similarly, families looking for an additional device for their children could find the $99 Nexus 7 an attractive option.
Technical Considerations
One of the biggest questions surrounding the $99 Nexus 7 is how Google and Asus plan to achieve such a low price point. The current Nexus 7 tablets are known for their solid performance and build quality, which come at a cost. To offer a tablet at $99, compromises will likely need to be made. These could include using a lower-resolution display, a less powerful processor, or reduced storage capacity.
However, it’s also possible that Google and Asus could leverage economies of scale and advancements in technology to keep costs down without significantly compromising on quality. For instance, older components that are still capable of delivering a good user experience could be used. Additionally, Google could subsidize the cost of the tablet through its ecosystem of services and apps, making up for the lower hardware profit with increased revenue from software and services.
Another consideration is the potential for advertising. Amazon, for example, offers discounted versions of its Kindle tablets that display ads on the lock screen. Google could adopt a similar model for the $99 Nexus 7, offering an ad-supported version at the lower price point.
While the idea of a $99 Nexus 7 tablet is exciting, it’s important to remember that this is still a rumor. If it does come to fruition, it could have a significant impact on the tablet market, making high-quality devices more accessible to a wider audience. However, achieving such a low price point will likely require some compromises in terms of hardware specifications. Whether these compromises will be acceptable to consumers remains to be seen.
Source BGR
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