Google's Nexus 7 Tablet hard to swallow for Japanese firms
News On Japan via Wall Street Journal -- Jun 28

It's official: Carving out a slice of the fast-growing tablet market just got even harder for Japan's hard-pressed electronics firms.

A week after software giant Microsoft Corp. MSFT +0.50% announced plans to jump into the hardware business with a new tablet called Surface, Google Inc. GOOG +0.82% on Wednesday confirmed its long-rumored entry into the segment with the Nexus 7, a $199 competitor that will highlight the potential for the company's Android operating system.

That means all major software companies with tablet-oriented operating systems are now making their own hardware - a business model that follows Apple Inc.'s AAPL +0.43% huge success in marrying its iOS software and iPad.

With televisions and other traditional consumer electronics offering little room for profit, electronics manufacturers are hoping to ride the smartphone and tablet computer boom to fatter profits. But for standalone hardware makers, the landscape has changed: there are no software friends anymore, just "frenemies."

So what are Japanese firms to do?




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