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Can a Google tablet compete against iPad, Kindle Fire?

Google could be the next technology company to throw its hat into the tablet ring, but can a Google tablet compete with the immensely popular iPad and recent newcomer Kindle Fire? 

Google executive chairman Eric Schmidt recently told an Italian newspaper that the company is planning to manufacture its own tablet devices, with the first release expected to take place in approximately six months, according to reports. Google?s Android operating system runs on tablets from several manufacturers such as Motorola and HTC and the company currently offers Google smartphones in partnership with Samsung and under the Nexus brand.

?Google wants to demonstrate the power of its operating system without the interference of OEM or carrier partners?Google wants to show consumers what ?true? Android looks like,? said Sarah Rotman Epps, senior analyst at Forrester Research, Cambridge, MA.

?Android branded as Android has very low market share in tablets today ? if you include Amazon and B&N tablets, which run Android but aren?t branded as such, it?s higher,? she said.

?Without a comprehensive marketing and channel strategy, a Google Nexus tablet is likely to have little impact other than annoying Google?s partners who are trying to market their own Android tablets.?

Market booms
Third quarter tablet shipments were up 264.5 percent compared with the same quarter a year ago and were expected to pick up even more in the fourth quarter based on the success of lower-priced tablets from Amazon and Barnes & Noble, according to a recent report from International Data Corp.

While Apple?s worldwide market share for the third quarter shrank from 63.3 percent in the second quarter to 61.5 percent in the third quarter, it is still the dominant force in the category.

If the six month timetable is accurate, a Google tablet could be released around the same that Apple is rumored to be releasing the newest iPad tablet. In order to compete successfully against the iPad, Google would have to put significant marketing muscle behind any tablet.

Google would also have to compete against the likes of Amazon?s Kindle Fire and the Nook tablets from Barnes & Noble. The Kindle Fire quickly picked up sales this holiday season thanks to its low price of $199 and Amazon?s significant marketing abilities while the Nook tablets have a dedicated group of fans.

These lower-priced entries are attracting new customers to the tablet space and helping to drive overall category growth.

The other hurdle facing Google is how manufacturers making tablets that run Android will feel about competing with Google in this space. It is possible that some of them could defect and move to another operating system.

Two markets
The tablet space is still evolving and looks to be splitting into two markets with high-end more powerful tablets on one end and lower-priced tablets optimized for media consumption on the other.

Several reports suggest that Apple may be feeling the heat from the strong growth at the lower end where most of the tablets have smaller 7-inch screens ? and will introduce its own small-screen version of the iPad later in the year.

A smaller-screen iPad would address the popularity of the Kindle Fire from Amazon and Barnes & Noble?s Color Nook and Nook tablet, both of which run modified versions of the Android operating system.

The Kindle Fire and Nook tablets are positioned more as media tablets with strong graphics but without some of the computing capabilities found in larger, more expensive tablets.

The question is will Google?s might be enough to drive strong interest for a tablet or will the company face the same fate as others who have introduced tablets and not found success. 

The growing list includes Hewlett-Packard, Dell and Research In Motion, which have all backtracked in the tablet space after earlier pushes into the market. 

?Google?s strengths are its programming and engineering expertise,? Ms. Rotman Epps said.

?It?s weaknesses are channel and marketing?will Google only sell its Nexus tablet direct through its Web site, or will it be in stores?,? she said. ?Consumers expect to test drive these devices at stores like Best Buy.?

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York