Subscribe

Google to open online tablet store

Kathryn McConnachie
By Kathryn McConnachie, Digital Media Editor at ITWeb.
Johannesburg, 30 Mar 2012

Google is reportedly planning to open an online tablet store through which to push its own tablets.

According to a Wall Street Journal report, Google will use the channel to sell its co-branded tablets, and presumably its own manufactured tablets once its deal with Motorola Mobility goes through.

This follows reports this week stating that, according to court documents, since 2008 it appears as if Google has only made a profit of $550 million from its Android software. Google does not charge to license out its software for smartphones and tablets, and earns revenue from advertising and app sales only.

While there is debate surrounding the accuracy of the figures, it is widely agreed that sales of Android tablets have not met expectations, and an online store would be an attempt by Google to remedy this.

Google, however, does not have a very strong track record in this space. For a brief period, the search giant sold its specially designed and branded Android smartphone, the Nexus One, directly via an online store. Google is said to have sold 100 000 handsets before closing the store after just four months, after it failed to live up to expectations.

The Wall Street Journal report says Google selling tablets directly will up the ante in its rivalry with Apple and the iPad. Figures from Gartner estimate that Apple currently has in the region of 73% of the global tablet market, while Android has just 17%.

The report claims sources close to Google have said the company is considering possibly subsidising the cost of future tablets to better compete with the iPad and Amazon's Kindle Fire.

It is noted that Google lacks the distribution channels of its competitors when it comes to pushing its devices. Apple has a comprehensive network of retail stores around the world, while Amazon has a strong online distribution channel.

It remains unclear as to when Google's online store will go live.

Share