“iPad killer” has become a term that is abused more than being aptly used. It was used generously with Amazon’s (NASDAQ:AMZN) Kindle Fire before it was launched, only to reveal that the tablet competes more as a media consumption device, and caters largely to a different end user. The next anticipated “killer” seems to be Google’s (NASDAQ:GOOG) Android tablet, expected to be launched in 2012. [1] However, given the iPad 3 anticipation as well as the threat of cannibalization from Android partners, Google’s tablet cannot be touted as the iPad’s strongest competitor just yet.
See our full analysis for Google’s stock
Apple Will be Sharpening its Patent Swords
Apple (NASDAQ:AAPL) has been known to break records when it comes to pre-order sales, and the iPad 3 is no exception. Expectations for the device are sky-high, with anticipated features including a screen with much higher resolution, as well as a quad-core processor for much higher speed. Additionally, since Google’s Motorola acquisition, the company has not come out with any kind of revolutionary device that could be reasonably expected to overshadow the iPhone or iPad. Apple would also be expected to battle Google with patent litigation, like it has been doing extensively with Google’s Android partners in the last year.
Cannibalizing Android-Partner Tablets?
What Google does have, though, is a significant market share in the global tablet market, which is expected to increase to around 40% in the 4th quarter from around 32% in Q3. [2] This could potentially put Android partner tablets, such as Samsung’s Galaxy Tab, in a situation where their market share could be eaten into by Google’s own tablet. While Google will undoubtedly reassure its partners that this will not be the case, this problem has seemed inevitable since Google announced its Motorola purchase.
We currently have a price estimate near $628 for Google’s stock, which is roughly 2% below the current market price.
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