Interesting analysis here
http://techpinions.com/battle-of-the...-nexus-7/10672
Quote:
The Google Nexus 7 does not represent a coherent business strategy. It represents the abandonment of strategy. While others are singing the praises of the Google Nexus 7, I am singing a dirge.
I predict that we’ll continue to hear a lot about Android tablet activations but we’ll continue to hear little about content and advertising profits, which is all that matters in a subsidized business model.
|
The basic premise is that Google is targeting value buyers by selling pretty much at cost, planning to make it up on content and advertising sales. But bargain buyers are less likely to buy the content or leverage the advertising so there's not as much money to be made.