Google's New Nexus 7 Could Sell for $149
If Hewlett-Packard's (NYSE: HPQ) $169 Slate 7 and Amazon's (NASDAQ: AMZN) $159 Kindle Fire HD were not cheap enough for frugal shoppers, Google's (NASDAQ: GOOG) next tablet might be just what they've been craving.
According to Reuters, Google could sell the second-generation Nexus 7 for as low as $149. This would be a $50 price cut from the previous model, which launched at $199 roughly nine months ago.
If the price cut goes into effect right at launch, Google is also expected to reduce the MSRP of the first-generation model, which will continue to be sold alongside the new iteration.
While the existing Nexus 7 is quickly becoming an old device for most of the world, the tablet is brand-new to Indian consumers. The Asus-developed machine was released last week for Rs 15999 (roughly $294, according to Google's currency converter).
This is significantly higher than the domestic version, especially since that price has been applied to the base (16GB) model. The other models cost even more.
Google is expected to ship the second-generation Nexus 7 domestically this July -- exactly one year after the original model was released. Numerous reports, including the latest from Reuters, suggested that Google will drop the Tegra processor series from NVIDIA (NASDAQ: NVDA) and switch to a processor from Qualcomm (NASDAQ: QCOM).
Reuters' sources say that processor will be part of the Snapdragon line, which powers Samsung's Galaxy S IV, as well as the HTC One.
If true, this would be a major blow to NVIDIA, which has lost many of its hardware and device clients.
Sony's (NYSE: SNE) PlayStation 4 proved to be too expensive for NVIDIA. Both Sony and Nintendo (OTC: NTDOY) chose AMD (NYSE: AMD) processors for their new game consoles. Microsoft (NASDAQ: MSFT) is expected to do the same.
Fewer smartphones are utilizing the Tegra processor series this year, which could pose an even greater threat to NVIDIA's business.
This might explain why the company is developing a handheld game machine. By creating its own hardware, NVIDIA may replace the devices that it has already lost to Qualcomm and AMD.
In February, NVIDIA unveiled the Tegra 4i, the company's first integrated Tegra LTE processor.
Previously known as "Project Grey," the Tegra 4i contains 60 custom NVIDIA GPU cores, a quad-core CPU based on ARM's (NASDAQ: ARMH) Cortex-A9 r4 CPU, full 1080p and the Chimera Computational Photography Architecture.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or firstname.lastname@example.org. Follow him @LouisBedigianBZ
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.