April 18, 2013

Is The Nexus 10 A Flop?

Google’s Nexus 10 was the company’s first branded, 10-inch tablet designed to compete directly with the iPad. Some recent reports are indicating that it has not been selling too well.

According to one analyst just 680,000 people own the device. That would be less than Microsoft’s Surface RT, which itself has only sold about one million versions of its Windows 8 tablet.

Is that a problem? Yes and no. While the Nexus 10 may not be seeing fantastic sales, the Nexus 7 has been fairly successful. Mobile analyst Benedict Evans believes at the end of March there were 6.8 million Nexus 7 tablets in circulation. This does not include the number of Samsung Galaxy Tabs, Acer tablets, and other Android devices in the wild.

Just like it does with smartphones, Google has a different strategy with Android than Apple or Microsoft. Apple makes the bulk of its revenue through hardware sales – every iPhone, iPad, iPod touch or MacBook it moves generates a substantial amount of revenue. To make things even better, once those users are in the Apple ecosystem they are bound to make purchases through iTunes.

Google, on the other hand, makes almost no money off of Android directly. Its money comes primarily from getting users to put more of their time in Google’s ecosystem – the data generated from Google searches, use of Google Now and other products is invaluable. It has kept profits high and helped Google successfully transition from the era of desktop computing to mobile. While the iPad may reign supreme in the tablet space, Google still can make money through its apps on both Android and iOS.

The point is not another lame “Android vs. iOS” post. Instead this furthers than both Google and apple are poised to dominate mobile, and possibly wider computing space, in years to come.

So no, the Nexus 10 is not a failure. If anything it put another pure Android experience in consumers’ hands, showing the public what they could do with such a device.

Image Credit: Google
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