Google is struggling to build a very cheap tablet. Today they announced Google Nexus 7 Tablet for only $199 for 8GB version. It is not the cheapest deal. BlackBerry tablet costs the same $199, but it has 16GB.

I don't think it is a good idea to build such a cheap tablet. First of all, Google shows impressive growth in Brasilia, India, China    - up to 500%. Wow. What a number. You know, people who can afford $500 will more likely buying something in the AppStore, than the ones who struggle to pay $199 for the cheapest tablet. Customers who pay $500 for a small device are more interesting to advertisers. 

The growth in Brasilia, India and China is nice and cool, but growth in the USA, Germany, and Canada etc. is more important. And Apple feels quite well on these markets. 

Apple makes money because the company sells hardware to ones who have money and whose income is good enough to be able to buy expensive toys. Google is trying to sell Android tablets to the ones who cannot afford a $500 device and most of them have less income than apple users. 

In my opinion Google should try to compete Apple on the best and the most compelling market – high-end toys for big boys.