Saw speculation about a forthcoming Google Tablet to try and fit somewhere between the Kindle Fire and IPad.
I would not be surprised if they went with a device offering A slightly better screen than Kindle Fire, passable performance, along with expansion (front/rear camera, sd slot, BT, external volume control, hdmi) etc, while keeping the price near $199US. Those are features not on IPad or KF(v1).
If the price point is low enough to achieve ubiquity, THAT is the market entry to want. Get users addicted to ubiquitous full color tablet presence, then up-sell future versions that wouldn’t be able compete on their own with an IPad but have 1: Google ubiquity, 2: foundation of existing user account/apps/familiarity but with better screen, faster proc, 4G service, longer battery, etc.
Google doesn’t have it’s on compelling content to offer like Amazon or Apples’s cult following and chic appeal. They have “open” (no vendor device or platform lock-in), Android marketplace and flexibility (customization, etc). They need “duh, yes get that” appeal.