To say that the Nexus 7 is one of the most popular Android tablets would seem like an injustice and rightfully so, it’s an awesome device in an amazing package. That’s why this new Reuters report has us excited as they are calling for the second-generation Nexus 7 to make an appearance in July according to industry sources.
According to Reuters, the Nexus 7 part deux will feature a Qualcomm Snapdragon processor instead of a Tegra chip as Google looks like to cut the price. Google hopes to ship as many as 8 million of the ASUS manufactured tablets in the second half of 2013. Amidst fierce competition from Amazon’s Kindle line and the iPad mini, a price cut may be just what the doctor ordered if Google hopes to hit those numbers.
The device will feature a higher resolution screen, thinner bezel design and adopt the Qualcomm chip. Google was said to weigh both the Qualcomm and Tegra options ultimately deciding on the Qualcomm for power and price reasons. Google may choose to keep the $199 price point the Nexus 7 originally debuted at and keep the original model on store shelves at a lower price. Alternatively, Google could discontinue the original model and price the new Nexus 7 at $149, which would certainly help give them a leg up on the competition.
With Google concerned over advertising revenue delivered from the Android platform, they may continue with a “zero-margin strategy” in order to get the device in the hands of as many consumers as possible.
“This is the ‘zero margin strategy’,” said Fubon Securities analyst Arthur Liao. “Ninety-seven percent of Google’s revenue comes from advertisement, so it needs to sell more mobile devices in order to reach more consumers.”
Google has never disclosed Nexus 7 sales figures, but its estimated that they sold 4.6 million tablets in the second half of 2012 against their plans to sell 6-8 million this year. ASUS has been confirmed as the continued manufacturing partner.
Neither Google nor ASUS could be reached for comment.