Will an online store selling Android tablets help Google compete against the market-leading iPad and the less-expensive Kindle Fire?
A few analysts are divided on the value of the move, which was reported by the Wall Street Journal, saying an online store wouldn't help Google cut significantly into the 65 percent tablet market share that Apple's iPad holds.
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But what if Google's online strategy isn't to go after the 9.7-inch iPad, with a starting price of $499 for the newest version? What if the intended target is lower-priced tablets, like the next-generation 7-inch Kindle Fire, which is expected to sell for $200 to $300?
DigiTimes reported this week that Google will work with Asustek to launch a cheaper 7-inch tablet in May or June. A Google tablet sold in an online store would likely run the next version of Android, called Jelly Bean, a PC World columnist said. Google is also in the final stages of acquiring Motorola Mobility, once China approves as expected, which would make it easier to cobrand a Google tablet for sale in an online store, some analysts have said.
Amazon sold 4 million Kindle Fire tablets at $199 each in December alone, making it the No. 2 tablet on the market behind the iPad, according to analysts. (Amazon typically doesn't disclose unit sales figures.) By contrast, iPad sold more than 13 million units in the fourth quarter of 2011.
Google wouldn't comment on the DigiTimes or Wall Street Journal reports on its online tablet sales or its partnership with with Asus.
Analysts are convinced, however, that Google will make a strategic move, such as online store, to sell its own cobranded tablet, probably in the price range of $200 to $300, lower than the iPad.
Two analysts had opposing views as to whether Google would ultimately succeed in its online approach.
Rob Enderle, an analyst at Enderle Group, said an online store won't do much for Google without physical stores and improvements to Android tablets. "An online store alone won't cut it for Google," he said in an interview.