Topeka Capital Markets analyst Brian White says Apple’s iPad is in little danger of losing its spot atop the tablet market to Google’s new Nexus 7. He says it’s “just another Android-based tablet.”
As expected, Google unveiled its $199 Nexus 7 tablet, the result of a partnership with Asus, on Wednesday at its Google I/O developer conference. The device, which features a quad-core CPU by Nvidia and a 1,280-by-800-pixel display, will go on sale in July.
White responded to the announcement with a note to investors saying there was “no threat here” to the iPad from the device.
“We believe the combination of Apple’s expanding digital grid, innovative design, unmatched aesthetics, leading App availability (with 225,000 native iPad Apps), intuitive user interface and expanding technology innovations will continue to keep the Company on top of the tablet market for many years to come,” White said.
He noted that the Nexus 7 is more likely to compete with Amazon’s Kindle Fire. Both are 7-inch tablets priced at $199.
White mentioned Apple’s ecosystem which he says is what will help keep it on top.
“In our view, Apple’s ecosystem still remains the best in the mobile device world with over 650,000 apps in total and 225,000 apps that are native to the iPad,” he said.
Topeka Capital Markets maintains a 12-month price target of $1,111 for shares of Apple with a rating of Buy.