Although Google Android operating system is the world's most popular OS for smartphones, it fails to gain traction on the market of media tablets, where Apple's iPad still dominates. In a bid to address slates, Google reportedly intends to release a series of co-branded media tablets with a number of companies as well as its own one to ensure highest-quality Android experience on such systems.
While Google does not compete against adepts of Android operating system, it does offer its own-brand smartphones made by Samsung Electronics. The company reportedly wants to use the same approach with media tablets, but this time it plans to co-brand its tablets with Asustek Computer, Samsung Electronics and maybe other makers as well, according to the Wall Street Journal. In addition, Google will also naturally offer its own tablet or tablets as a result of acquisition of Motorola Mobility.
Google thinks that the current model for selling tablets does not work: not all operators are interested in selling tablets and few consumers would like to buy tablets from operators. Therefore, Google plans to sell tablets via a special online tablet store, or, more likely, a list of "friendly" stores. In addition, Google reportedly plans to launch a massive ad campaign to support its tablets.
Another problem for Google is that companies like Amazon and Barnes & Noble can sell their proprietary Android-based tablets at $199. Although Google receives some revenue from those devices, they slowdown sales of media tablets with fully-fledged Android operating system, which allows Google to earn much more. At the same time, Google cannot compensate potential selling of console at a loss since it does not have as rich library of content for sale as Amazon and B&N do.
Still, there are ways for Google to sell their tablets at normal (not discount) prices. Some U.S. retailers are anxious for an Apple rival to emerge in the market, as Apple's rules require stores to promote its devices more prominently and the retailers generate less revenue per sale of Apple products versus other electronic devices, according to WSJ. Therefore, store chains will likely welcome well-advertized devices on their shelves.