Google Nexus 7″ Tablet introduced

June 28th, 2012

Google Releases Nexus 7″ Tablet to Compete with iPad, Surface, Fire.

Other than the e-readers, as in the Amazon Kindle and the Barnes and Noble tablets, Android tablets have not sold well. Google will now manufacture their own tablet computer, just like Apple does with iPad and Microsoft will do with the Surface tablet. The Google Nexus tablet, at 7″ screen size, appears intended to compete more with Amazon and Barnes and Noble; similarly, the Microsoft Surface seems more likely to compete with ultrathin notebooks. Both, of course, will take a way at least some marketshare from the iPad.

More striking is the apparent change in strategic business models for the tech industry. Microsoft achieved success by licensing its PC operating system to third-party OEM computer manufacturers. But that model seems to be fading as  Apple manufactures (via FoxConn) its own tablet and smart phone. Google recently bought Motorola (a phone manufacturer) and will now sell their own Google tablet (and eventually, Google Glasses!)  Microsoft will build its own tablet and some think that its partnership with Nokia will become stronger, even to the point of Microsoft buying Nokia (at present market cap, Nokia is pretty cheap to Microsoft).

Is the PC’s OEM business model fading away?

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Categories: Business, Smart Phones, Software |