More analysts added their spin this afternoon to Google‘s (GOOG) announcement it will sell its own branded tablet computer, the “Nexus 7,” running on its Android operating system, putting it into competition with hardware partners such as Samsung Electronics�(005930KS).
As I mentioned earlier, Topeka Capital Markets‘s Brian White�opined that Apple‘s (AAPL) iPad has little to worry about from the Nexus 7, given the Nexus feature specs seem less desirable, and Apple may come out with a smaller, cheaper iPad this fall.
Likewise, Brian Marshall with ISI Groupthis afternoon reiterates a Buy rating on Apple as well, and a $750 price target, writing that “We believe GOOG is making meaningful improvements to its ecosystem/Android and that the $199 price point could help GOOG gain some traction in tablets.”
“However, we believe AAPL remains well ahead and are comfortable with our iPad estimates (e.g., 64mil in CY12, 80mil in CY13).”
Nomura Equity Research‘s Romit Shah reiterated a Buy rating on shares of chip maker Nvidia (NVDA), whose “Tegra” processor will be used in the Nexus 7. Shah sees the Nexus as evidence Nvidia’s mobile business is “gaining momuntum,” given that it follows just a week after Microsoft‘s (MSFT) unveiling of the “Microsoft Surface” tablet, one model of which will also use Tegra.
Shah estimates the Nexus could ship 5 million to 10 million units through the end of this calendar year. He thinks Nvidia may see its Tegra business produce $550 million in revenue this year, up from $360 million last year.
Google shares today are up $4.93, or 0.9%, at $569.61, while Apple shares are up $2.12, or 0.4%, at $574.14. Nvidia stock is up 41 cents, or 3%, at $13.14.
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