Tomahawk, WI 11/20/2013 (BasicsMedia) –  Google Inc (NASDAQ:GOOG)’s entry into smartphone and tablet business is causing jitters in the market. GOOG with market cap of $342.58 billion is not the kind of a company that you would wish to compete with, but now it’s big in the smart-devices market. The company is best known for its internet search engine search which for a long time has been its core revenue earner. But now the company is diversifying and hardware seems to be its most preferred option. The company acquired Motorola through which it makes and sales low-cost smartphones and other communications devices. GOOG also makes full Android tablets and smartphones through LG.

Google Inc (NASDAQ:GOOG) has now brought India into the list of target markets for it fast speed Android devices Nexus 5 smartphone and Nexus 7 tablet. Nexus 5 is Google’ official Android phone and new Nexus 7 also runs on Android and features Full HD display. The company is offering these devices to Indians through its online store Google Play.

Fair pricing by GOOG is a market catch line

The company is offering these devices at prices which are far lower than those of competitors in the industry and this is expected to give it a head start in India.

Indian users will have access to Nexus 5 feature 16 and 32GB in memory capacity. Wi-Fi enabled Nexus 7 will be available in 16GB and 32GB memory capacity in the store. The devices also feature LTE connection capability with the Indian operators and this is expected to boost their uptake among high-speed data hungry consumers. These devices will automatically update new features or tweaks made by the manufacturer on the operating system.

GOOG and Microsoft spoiling for a fight with industry giants

Google Inc (NASDAQ:GOOG) and Microsoft are the latest big companies which have made clear their intent to partake in the multibillion dollar smartphone and tablet industry have seen how Apple and Samsung have grown super rich in the market. Microsoft has just sealed a deal with the Finnish icon company Nokia for the purchase of the latter’s mobile segment through which it will roll out its smartphone devices. The Redmond company already has its Surface tablet device in the market. On the other hand, Google Inc (NASDAQ:GOOG) is having a multipronged entry into the smart-devices market with its LG made Nexus devices and Motorola made smartphones.

The two companies are not the only tech firms baying for the blood of Apple and Samsung as far as smartphone and tablet business is concerned, Amazon is also charging with its Kindle Fire. The interesting thing is that these new entrants are using price factor to penetrate the market. Given that GOOG makes the most of its revenue from search ads on its website, having more people access the internet on their phones is a perfect way to boost its ad revenue and profit.
Investors should note that Google Inc (NASDAQ:GOOG) is not in smartphone or tablet business purely for profits, but the underlying calculation is that which will lead to low cost of these devices, thus increase internet access and more ad revenue.

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