Google's New Nexus Tablet Will Hurt Microsoft More Than Apple

google nexus 7

Shaw Wu, an analyst with Sterne Agee, thinks that Google’s Nexus 7 tablet poses a bigger threat to the Microsoft Surface and Kindle Fire tablets in the short term than it does to Apple’s iPad.

The reason, as he explained in a research note on Thursday, is that Google’s new tablet is very competitively priced and offers a “richer app experience” than either of Amazon’s or Microsoft’s products. However, the tablet’s features still don’t compare to the iPad.

From Wu’s note:

We believe GOOG will post more of a threat to AMZN and MSFT due to its much better established market leadership of Android OS and richer app experience. GOOG has about 600,000 apps, far more than MSFT’s 80,000 and AMZN’s 31,000. We believe GOOG’s competitive impact on AAPL is likely limited in the near-term given AAPL’s stronger ecosystem of devices, richer availability of tablet apps, and 3G/4G wireless connectivity.

Microsoft, for its part, isn’t really trying to compete in the low-end tablet market, but the competitive pricing and features of the Nexus 7 tablet could make it that much harder for the Surface to gain a footing in the market when it launches.

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