Back to top

Analyst Blog

Internet search giant Google Inc. unveiled its second-generation Nexus 7 tablet, powered by Qualcomm Inc.'s (QCOM - Analyst Report) Snapdragon processor. Google will start selling its flagship tablet from Jul 30, 2013 in the U.S through its online store.

The second-generation tablet has a better screen resolution and a thinner design. Google decided to install Qualcomm's chip, replacing Nvidia Corp's (NVDA - Analyst Report) Tegra 3. Tablets with fast processors offer improved performance and therefore enjoy steady demand. . With a new powerful processor for its second generation Nexus tablets, Google hopes to make inroads into the overcrowded tablet market. The different versions sell at $229 to $349

Apple Inc. (AAPL - Analyst Report) is primarily a hardware vendor and therefore greatly dependent on device sales. The company is likely to maintain its leadership position with the soon-to-be-launched next-generation tablet, iPad 5.

According to IDC, Apple’s shipped 19.5 million tablets in the first quarter of 2013. In the process, Apple captured 39.6% of market share, followed by Samsung’s Galaxy line of tablets with 17.9% share, Amazon’s Kindle Fire with 3.7% and others making up the rest. Google is way behind its competitors but its Android-based tablets are gaining on iOS-based tablets every day.

Further, IDC predicts that tablet shipments may reach 350 million by the end of 2017. It also predicts that smaller screen sizes i.e. 7 inch and below may become more popular as consumers prefer smaller devices for daily use.

In the second quarter of fiscal 2013, Google reported solid earnings of $7.81 per share that missed the Zacks Consensus Estimate by $1.23 or 13.7%. Google’s gross revenue (including total traffic acquisition costs [TAC]) came in at $14.10 billion, representing sequential and year-over-year growth of 1.0% and 19.5%, respectively. Google’s standalone revenues grew 1.2% sequentially and 19.5% year over year but Motorola’s growth rates continued to lag.

Google has a Zacks Rank #5 (Strong Sell).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%