Nexus 7 sales looking strong, but incoming iPad Mini threatens to steal Google’s thunder

Amazon made a bold move when they entered the tablet game with the Kindle Fire. The device was just $200 to start, and since then it’s gotten even cheaper in the second generation. It quickly shot to the top of Amazon’s best-seller list, and now it looks like Google’s enjoying some similar success with a little tablet of its own.

Carphone Warehouse has stated that the Nexus 7 has become its highest selling Android tablet of all time. Before we get too excited we have to put things into perspective a bit — when the best Android tablets, such as the lines from ASUS and Samsung, aren’t making huge dents in Apple’s market share you have to imagine the mountain, or hill, to climb is small.

But the line Google decided to draw between those OEMs and themselves is price. The Amazon route makes perfect sense for them because getting more devices with Google services into people’s hands is more important than margins on the device itself. It’s all about content, search, and ads, and thanks to Google’s classic strategy of free or low cost the Nexus has benefited tremendously.

Unfortunately for them, however, the iPad line still exists. And not only does it exist, it’s about to try and challenge the very same market Google and Amazon have discovered.

Think about this: if the iPad line, which currently starts at $500 for current generation hardware and can get as pricey as $800, can sell the way it does now, imagine what’ll happen if they get closer to that $200-$300 mark Google and Amazon like?

That’s exactly what the iPad Mini looks set to do. At a smaller screen size and a cheaper price (currently rumored to be starting at about €249 or $320, and pricing is subject to be different from region to region so it could be under $300 in North America) Apple is about to apply one mean death grip to the market that not even Darth Vader himself can contend with.

Apple makes its premium on device sales so taking a loss is not particularly attractive. It looks like the Cupertino company will be more content with decreased margins if it meant selling more devices at a more rapid rate.

So, unlike Google and Amazon which both have reason to enter this market at such daring price points because of the need to drive content and searches, Apple’s motivation is driven almost entirely by the desire to gain and control more market share.

Perhaps Apple wants to be more diligent in making sure what has transpired in the smartphone world doesn’t repeat with tablets, but whatever the case may be I’d say Google, Amazon and any other tablet manufacturer has reason to worry as an already tough market is about to get even more difficult to compete in.

We’re sure Google will be celebrating this success for now, though, and we certainly don’t want to be the ones to rain on the extravagant parade for too long. Lift a glass to the “don’t be evil” company and wish for the best going into the most important season the Nexus 7 has faced yet.

Continue reading:

TAGS: , , ,



  • http://www.dsaif.com/ Saif

    $300.. NO JUST NO!

    • a) youth.in.asia

      Half of the iSheep have …or what seems like a subscription to Apple products…

      Apple: we can automatically deduct $1000.oo a month from your bank account and we will automatically send you an email letting you know when your latest iProduct is being shipped to you!

      iDiot: sounds too good to be true! great!

      iSheep: Ahhh man… But I liked waiting in line for days for an iProduct! I have even been working on my baahaa… BAAAAAAHHHHHAAAAAAAAA! WAS THAT GOOD OR WHAT?!

      • http://twitter.com/1huckabuck Remo J Gutierrez

        Hahaha. yous is hardcore.

  • Mike Yost

    I would not pay $300+ for a 7″ tablet, but then again, apple fans aren’t known for smart spending.

    • phinn

      Mac fans aren’t, but iOS people are. The iPhone, iPod, and iPad are all very well priced devices. (example: iPhone 4 = free, iPhone 4S = $99, iPhone 5 = $199, how do you argue with that?)

      • http://twitter.com/1huckabuck Remo J Gutierrez

        $100 Samsung GS3, get outta here with that nonsense.

        • No_Nickname90

          But isn’t that a sell?

          • http://twitter.com/1huckabuck Remo J Gutierrez

            It is, I was just saying. I got a bit annoyed at the “I” so yadadada BS.

          • a) youth.in.asia

            Sale*

      • Ben Kapferer

        Go without the contract and that low price goes away completely.

      • sergio batz

        wtf kinda of example is that those are all phones and with a 2 year contract. Here are the real prices iphone 4 =$450, iphone 4s $549, iphone 5 $649. In all reality i have my doubts the ipad mini will cost under 300$ look at the damn iphone 4 with 8 gigs.

        • http://www.dsaif.com/ Saif

          You can get 2 Galaxy S3s with the price of one iPhone 5 (GSM)

      • a) youth.in.asia

        Mac iDiots and iOS iDiots are the one and the same.

        The Apple doesn’t fall far from the tree

        • Guest

          I think you meant iDolt. Also the expression is “one AND the same”. So much for sounding like a superior Android user.

      • Don_SoLow

        But when you look at the off-contract prices it’s really ridiculous

      • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

        $300 for an iPod Touch. $149 for an iPod Nano. That’s how I argue with that. Those are on contract prices you’re spouting. I don’t know that Apple will cannibalize their iPod touch sales like that.

      • Butters619

        Anybody who signs a 2 year contract for an iPhone 4 is a fool

    • Guest

      The prices have been leaked by a European reseller. $249 base price for the 8GB model. It’s a low capacity, but a very aggressive price of entry. If that is indeed the case then it’s pretty much game over for the Nexus 7. The Kindle Fire will survive, but will compete at a reduced market share. In terms of margins, Apple will make the lion’s share of profits from the higher capacity models (especially the cellular versions) as is the norm with all their iOS devices.

      • http://www.twitter.com/ninjustin ninjustin

        Apple is selling the iPod Touch for $299 there is no way in hell that Apple is going to sell the iPad Mini for less than that. They would undercut thier own product. My guess would be somewhere from $350-$425 for the base model. I even think $350 is low for Apple.

        • Guest

          Incorrect. iPod Touch entry model goes for $199 (16GB Gen 4). The model you’re referring to is the 32GB gen 5. If you properly look at the metrics, then you’ll see that an 8GB iPad mini priced at $249 would fit within the product lineup. We will know soon enough as invites were sent out this morning. I can say with confidence that the base iPad mini will not cost more than $299.

  • Gina

    From what the rumored specs and prices are why would ANYONE want to buy the iPad?

    • ratnok

      You know why. They are paying for the brand.

    • phinn

      Because it was the first tablet of it’s kind, just like the iPhone, and it is the most supported tablet on the market for quality apps. I love Android but face facts.

      • No_Nickname90

        But think about it. Won’t this create even more fragmentation for Apple? Apps are designed for 3.5 inch and the 10 inch tablet. Now developers have to make a 4 inch version of their apps. They come out with this and developers would have to once again change their apps and make it compatible with 7 inch screen.

        And Android has Phone, Phablet and Tablet Apps. Apple doesn’t have a Phablet version of their apps.

        Will the apps have to expand? But Apple apps aren’t designed to expand or shrink. So how will this work?

        • Montisaquadeis

          Dont see why they wont use the older 1024×768 resolution for the 7 inch tablet which means no need to update ipad apps since the older ones are that res.

          • http://twitter.com/inguatu ingua2

            horrible res. Apple won’t do it.

          • ari_free

            Tim Cook is now in charge so it wouldn’t surprise me if they did.

          • aaronfg

            Horrible? It’s the same res as the iPad 2. Which is still selling just fine.

          • ari_free

            But that’s a lower resolution than the cheaper N7. Checkmate.

        • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

          If they keep the aspect ratio, the resolution doesn’t really matter. They can just use the old iPad format.

          • No_Nickname90

            Ah!! Now I understand. That’s why a lot of apps work across different Android phones. Its based on the aspect ratio not the resolution. I always wondered that. Thanks.

    • abc

      Which rumored specs fail to meet your expectation in the upcoming iPad mini?

      A few points about Apple products, because I’m sure your feelings about failed specs go beyond the iPad or the upcoming mini but rather the entire scope of the Apple products.

      So lets see..

      Do you realize that Apple’s A6 designed dual core processor out performs practically any other processor out right now including quad cores from competitors?

      Do you realize that iPhone’s camera and sensor is revered as the best in the mobile industry?

      Do you also realize that Apple’s iPhone and iPad have been the undisputed leaders in GPU performance for several years?
      Lastly, do you realize that even to this day, with the market flooded with phones with excellent displays, the Retina display still comes out on top by many reviewers for clarity, contrast, color reproduction, saturation, etc?

      Obviously, you don’t realize all this.
      Are Apple products lacking in some spec areas? Sure…for example the lack of NFC. But to discredit their excellent processing, display, camera and GPU prowess is ridiculous.

      • http://twitter.com/inguatu ingua2

        You do realize the iphone camera IS NOT the best in the mobile industry. You DO realize GPU performance is skewed based on which tests are performed and which OS those tests are optimized for? Clarify your iBiased assessment of the retina display. How many reviewers? What sites? iFan sites? People at Best Buy? Or maybe people in line buying one at the Apple store?

        Obviously you’re in iDefense mode of your mothership. Your argument is ridiculous.

        • abc

          I’ve owned several Android phones and my current phone is Android.
          I don’t hold a tech company as my “mothership.”
          I love technology and unlike you I like to be unbiased.

          If Apple is better in something I’ll say it. If Android is better in something else than I’ll say that too.

          Why can’t I be unbiased without being labeled as defending my “mothership?”

          Get a life.

          • a) youth.in.asia

            GSIII got the best of innovationPhone 5. They need to play catchup, their market share is dropping by the day

          • keanmay

            How much should I pay you to kiss my ass too?

          • IronHorse01

            because this are fandroids and if you show even the slightest sign of being unbiased, or objective you automatically get called a sheep, regardless of how valid your point is.

          • Ben Kapferer

            Right, it is we who are biased and unobjective…

          • ari_free

            We like to make fun of hipsters with their iPads and Starbucks lattes and daddy’s credit card to pay for all of it.

        • Observant Freeman

          Dumbest post today…here are reviews from anandtech of both the screen and SoC…
          http://www.anandtech.com/show/6334/iphone-5-screen-performance
          http://www.anandtech.com/show/6324/the-iphone-5-performance-preview
          I personally don’t give a crap abou the screens…I care more about the performance of these devices…of you want to say that every benchmark is skewed because they do not favor yøur android devices, then I understand…just don’t disqualify everything that doesn’t fit in your worldview…

          • ari_free

            Some people have more interesting things to do than running artificial benchmarks.

          • Observant Freeman

            True…but I’m pretty sure the App store will take care of that…and with the most powerful SoC powering the device, everything works even faster…

          • ari_free

            Faster multitasking?

          • Observant Freeman

            It works pretty fast, but faster performance is always welcome…

      • a) youth.in.asia

        Holographic display and laser keyboard

      • ari_free

        “Do you realize that iPhone’s camera and sensor is revered as the best in the mobile industry?”

        Yes it has the best purple haze in the industry. Oh and it also has panorama! Welcome to 2012.

  • Hilman in Edmonton

    I just don’t seeing it costing $300 as the 32GB iPod is the same price, I would guess $350-400 so they don’t cut into iPod sales.

    • ratnok

      CNET is saying that minus local taxes and adjusting for exchange rates, it will be selling in Europe for the equivalent of $260. That’s for 8GB.

      • Hilman in Edmonton

        I would be surprised if they made a Mini iPad with only 8GB as the smallest iPod is now 32 GB ($300) and the smallest iPad is 16 GB (~$520 for the 3rd gen in Canada). One would think a media hungry device like an iPad would have at least 16 GB, guess we will see soon but does a mini iPad just cut into iPod or iPad sales?

        • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

          No, I could see it. Esp. if they’re trying to get into the smaller tablet market.

      • Unorthodox

        I call a huge BS. I second Hilman_ca, there’s not a single chance Apple is moving away from overpricing their sh1t. I say $400, or $350 for the most basic model.

    • No_Nickname90

      That is a good point to bring up. They will have to cheapen the prices of their iPod Touch line if they come out with this.

      • a) youth.in.asia

        No they won’t! What iDiot is going to walk around with an iPad mini and use it as a music player when you can just buy both?! Double tap!

  • blest

    Read the title.. Knew it was Quentyn. Lol

    • http://www.phandroid.com Quentyn Kennemer

      I’m lost lol

      • blest

        Just messing with you. You know how people on here say you’re secretly into apple.

        • http://www.phandroid.com Quentyn Kennemer

          Oh yea, lol. Biggest mistake I’ve made was publicly admitting I owned an iPad 2, ha! But that is no longer the case ;)

          I just love the competition of all these companies and think it’s interesting to wonder about the implications of rival devices and OEMs on Android.

          • http://twitter.com/1huckabuck Remo J Gutierrez

            So I’m guessing you possibly now have the THE Asus Pad Infinity? That is my tablet of choice right now, though I am currently rocking Asus illigitamate brother, Asus Nexus 7’… :-)

  • DavidVarghese

    If Apple really wanted to be competitive, they would price this at the most $250… Apple just wants to tag along for the ride, trailing behind the Kindle Fire and Nexus 7 craze, like they have been doing overall for quite some time now.

    • Observant Freeman

      Lol… Apple has certainly been trailing “behind” the nexus 7 and kindle fire for quite some time now…

  • warcaster

    Why would you assume the iPad Mini will hurt Nexus 7 sales? I would be a lot more afraid if I was Microsoft, because their tablets will actually be twice the price of an iPad Mini, and they have nowhere near a “retina display”, either. At least Nexus 7 is cheaper, and even has a bigger resolution and PPI than the iPad Mini.

  • Joe

    I don’t think the new iPad will come in at anything under $300, if it does Apple is likely to ruin sales of the big iPad, say they sell it for $250 and the big iPad is $500 people will see that as twice the price just for a slightly larger screen, I personally don’t think the iPad will be cheap apple doesn’t do cheap products

  • TechGuy22

    LOL the new mini crap is outdated. apple wont put anything exciting under 200 dollars.
    and for god sake its apple we talking about here. IPad mini 299 with last year specs yet people might buy it because it has a stupid half eaten fruit logo.

    N7 FTFW

    • http://twitter.com/inguatu ingua2

      People will buy it, because it’s an ipad. Plain and simple. It’s sad but true. No matter how much we know Android and Windows are better than iOS and OSX, the masses are taken in by Apple’s simple commercials. Granted, some of the commercials like Siri and Maps are a fabrication of how the apps really work, but generally iFans don’t really care.

      It’s going to take Apple really screwing up over a period of 3-5 years for people to finally wake up.

      • http://twitter.com/1huckabuck Remo J Gutierrez

        If only Samsung would throw a wrench into the assembly line…like literally.

        • ari_free

          No but Apple’s own foxconn slave workers would.

      • Observant Freeman

        This comment made me chuckle…

      • aaronfg

        “No matter how much we know Android and Windows are better than iOS and OSX, the masses are taken in by Apple’s simple commercials.”

        Or maybe they just like those products better. You that it’s ok for people to like different things than you, right?

        I never understand why everyone has to generalize so much and make a fuss. Let people use what they like best for them. Who cares?

    • a) youth.in.asia

      I heard they are repurposing first gen iPod touch just with the bigger screen, same specs

    • Observant Freeman

      Lol….if the new iPad mini is powered by the A6 chip, it would destroy literally every android tablet there is…it would wipe the floor with them in every CPU and GPU benchmark…I know I’m going to get down voted or maybe even reported because this is a fanboy site, but I just thought it would be nice to open up the windows to reality for those who haven’t seen anything outside of fanboy sites in a while..l

      • kBye.

        “powered by the new A5XXZ chip”

        What if that happens, and it’s the same thing as the A5? xD

        • Observant Freeman

          Haha, that would be hilarious…I doubt it though…unless they try to pull of the crap they pulled with the iPod touch… :P

  • GlennStile

    Frankly I think amazon with the fire hd and Google with the nexus 7 have set the bar very high at the $200/£150 mark. I’m sure the uninformed will go for Apple brand but if they get to see the Android equlivent common sense will prevail. Time for some good advertising from Amazon and Google for the Christmas season

  • acey_zero

    Wasn’t it just recently reported that Android tablet market share was up to 48% vs apples 52%, and these numbers were from before the N7 and Kindle Fire HD? Surely Android has already surpassed apple in market share.

    apple may be able to pull ahead again for a short while if they price the mini low enough, but it seems inevitable that they are not going to be able to hold on to the majority of this market anymore.

  • Scott Tilney

    The iPod touch starts at $300. ipad Mini will be at least $400

  • http://twitter.com/1huckabuck Remo J Gutierrez

    Hopefullt Google starts making some huge dents in Apples tablets. It seems lots of people only associate a tablet device with “iPad”, the same way some brand companies have asociated their brand name with other devices, xerox copiers, i cant think of more examples, windex? ect. hope Android “tablets” dont cintinue to be looked as just generic ‘brands’.

  • Val Firsov

    Ive got a nexus7, don’t care about ipad mini.. I’m sure it will sell but not so much to new people to tablets, like i was a few months ago with the nexus but more to current apple owners with the original ipad or older apple products.. i feel with every passing month without Steve at the help apple just keeps losing its luster.. just my 2 cents

  • kev2684

    I doubt it’ll be $300 considering iPod touch is iPad Mini in some degree and it is already at $300 price point..

  • No_Nickname90

    LoL!! Apple will fail. They cannot do that. They won’t be able to keep up with the demand. I can see it now. If the Nexus 7 had a shortage, just imagine the Apple Mini. And Apple will be a hypocrite once more if they come out with this.

  • NIGHTSCOUT

    I don’t see the iPad 7 being priced below $350

  • a) youth.in.asia

    I bought this for me and gave my other two iPads to my infant so he can facetime with his mommy when he is supposed to be sleeping in his crib

  • Brian S.

    Aw, no graph or chart.

  • watson111505

    IWHO

  • renGek

    I’m curious to see if apple will suffer a branding fatigue putting this out so close to iphone 5 and having all that negative publicity of the last 4 weeks. I’m not seeing nearly as many articles about mini as we did for any of the iphones. That buzz to me just doesn’t seem to be in the air. Also, I’m wondering if apple is intentionally down playing seeing how they seem to have a variety of supply/production issues currently.

  • Mouhammad Al-hajji

    When I chosen the nexus 7 I look for something can communcat with my Galaxy nexus not any device which it have to be Android tablet

  • Guest

    Really? The article STILL references “Don’t be evil”? Google’s business model is to harvest as much consumer data as possible. Human data are their product (unlike HP or Apple, who’s product is hardware), hence Google’s non-existent customer support. Yes Android is a great iOS alternative, and yes their search is mind-boggleingly good. But whoever is duped by “don’t be evil” is an naive fool. Google is a privacy compromising behemoth, and clearly more ‘evil’ than Apple or Microsoft (although not as evil as the mafia run Samsung monopoly). Are some Android users this naive?

    • http://twitter.com/1huckabuck Remo J Gutierrez

      They are all evil. All of these telecommunication companies are in bed with the evil government. I have watched “Enemy of the State” enough times to tell me this is true. On a serious note, awhile back it was reported that Apple was feeding millions of info of iPad users?, however that story went. That story swept underneath the rug and U.S. media will never report it or do a follow up ever again. “Oh that news clipping was fake and was proven to be untrue”, and it is that easy. We just have to get used to our privacy online being invaded by the powers that be. The government can make laws to bring these telecommunication companies to help the government. There is one law on the books right, at the moment I can’t remember it but its two sided, a double edged sword and these companies must comply and do whatever the government asks of them.

      • http://twitter.com/1huckabuck Remo J Gutierrez

        I like to think Google wants to gather all my info to see what I want to purchase or thinking of purchasing.

      • http://twitter.com/1huckabuck Remo J Gutierrez

        Sucks I left so many words out, one is “the government can make laws to bring these telecommunication companies to their knees..so that they can help their own government” already foreign governments block twitter and Facebook and all kinds of crap. We live in some fake world if we believe that the internet is OURS.

    • http://twitter.com/1huckabuck Remo J Gutierrez

      Recently Iran’s main servers at their power plants were attacked with virus, who did that?, some tech guys from the NSA? Iran is now doing away with Google and making their own internet service for their entire country.

  • samuraiScanners

    Nexus 7 don’t have to worry about that, however, Apple should, if it priced $300, which means people planned to buy “iPad big” will changed their mind to buy “iPad mini” instead, this also means the Apple will lost profit if people are not buying the $500-$800 ones.

  • a.d.AM

    Theres nothing like the smell of iPad sales cannibalization in the morning……

  • http://www.facebook.com/AGx07 Chris Brown-Demoreno

    “Before we get too excited we have to put things into perspective a bit — when the best Android tablets, such as the lines from ASUS and Samsung, aren’t making huge dents in Apple’s market share”

    http://phandroid.com/2012/10/02/study-showing-android-tablet-market-share-jumping-to-48-ipad-down-to-52/

    I don’t care that you don’t consider the Kindle Fire to really be an Android Tablet, it’s putting huge dents in Apple’s Market share and thats the bottom line that I care about. And I’m sure there’s a TON of people like me waiting for a Google branded Nexus 10.

    • http://knuckles-mutatis.myopenid.com/ Knuckles Mutatis

      Funny, but I was about to post the same thing (that the tablet market is now 52% to 48%). It’s funny how many writers will just repeat nonsense that Android isn’t selling in the tablet world, without actually bothering to look at sales figures.

  • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

    My wife has an original iPad. She likes it just fine, but lusts for a lighter device. At $200, she’d be fine with a Nexus 7 (I have one, and she seems to like it just fine, and she has an Android phone, so she isn’t married to Apple by any means) I’ve told her about the Apple, and she might like that, but if the price difference is $100 or more (8GB is fine with her for it) she’d probably opt for the Nexus. She’d keep the iPad, and carry one or the other depending on circumstances. We’ve talked about it and that’s what she’s come up with.

    But we’ll see what she says when she holds the iPad mini in her hands. She hated the iPad 2, but likes the 3 OK (Not enough to buy it since the original does everything she wants), so it’ll boil down to the ergonomics most likely. Either way, she’ll be guaranteed a solid device.

  • InspectorGadget80

    still can’t beat the 250$ IPADS ARE NEVER cheap. it will only sell because of the name. so i don’t see any threat

  • MJ

    The new generation ipad will be the ipad mini, mark my words.