Google Inc. (NASDAQ:GOOGL) is gearing up for whatever Apple Inc. (NASDAQ:AAPL) will throw at it with a new iPad after unveiling a new Nexus 9 tablet. During an interview an on Bloomberg, Technalysis Research President, Bob O’Donnell, argued that the tablet market might be a bit saturated for Google to enjoy impressive success with the new product.
O’Donnell made the remarks in the wake of Intel Corporation (NASDAQ:INTC) announcing that PC sales have been improving reiterating even better performance going forward. O’Donnell believes that tablets will face stiff competition from PCs as the refresh cycle in the space remains low meaning fewer people are willing to make an upgrade.
“I think the tablet is challenged in fact you know personally I put out a forecast that says I don’t think tablets ever even surpass PCs. […] What we are finding with the tablet is tablets aren’t more of a must a have device not necessarily a have to have device. I am not going to call it a niche market but let’s just say a lot of people who want a tablet already have a tablet.”
Bloomberg’s Corry Johnson, on the other hand, believes the tablet market might have gotten way ahead of itself in terms of products. Something that is going to be of a challenge to Google Inc. (NASDAQ:GOOGL) with the new Nexus 9. Saturation of the market is seen as a key challenge that Google will have to bypass if it is to enjoy success with Nexus 9.
Google Inc. (NASDAQ:GOOGL) will not be the only player that will struggle in the tablets market according to Ryan Reith, IDC Mobile Device Tracker Program Director. The fact most people who would wish to own a tablet already have one is also expected to be a challenge for Apple when it releases new iPad. Reith also believes that Apple won’t be affected much compared to Google Inc. (NASDAQ:GOOGL), on the decline of iPad sales as it has already ramped up sales with iPhone 6.
Apple Inc. (NASDAQ:AAPL) and Google are expected to diversify the usage of their tablets as one of the ways of pushing for more sales in the space. O’Donnell expects future tablets to play an important role on the enterprise while also acting as cash registers.
“I think we are going to see more specialization in tablets; we are going to see things like point of sales tablets for commercial. We are going to see things like a gaming tablet,” said Mr. O’Donnell.
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