Google announces 7" tablet for £159

The Nexus 7 will take Amazon head-on in the cheap tablet market

At their I/O event yesterday evening, Google announced the Nexus 7, a 7-inch Android tablet which will retail in the UK from July for £159. 

The specs for the device bode well. It will come with 8GB or 16GB of storage (there's a £40 premium for the bigger one),and have a 1280 x 800 IPS display; that's the same type of display as the new iPad, but with a little over half the resolution. It also has a 1.2-megapixel, front-facing camera, though nothing on the back, which is good because you look like an idiot if you take photos with a tablet.

As part of Google's Nexus range, the tablet will be made by a third-party – in this case, Asus – but with Google taking full control of the software. When it has attempted to do this with its Android phones, it has been a double-edged sword for the company. On the one hand, the devices, the latest of which is Samsung's Nexus Galaxy, are the undisputed reference devices for the operating system, and have unrivalled access to new versions of Android, something other companies are notoriously reticent to provide. On the other hand, the control Google exercises means that the network carriers are loath to promote them; the Nexus One, Google's first foray into the hardware market, could only be bought through its online store.

With the Nexus 7, that downside should matter less. The tablet doesn't have any mobile connectivity, so carriers don't get involved, and Google has confirmed that they may sell it through conventional retain channels, although those stores are unlikely to be able to match the near-wholesale price that is being offered on the company's online store.

Although the iPad is the undisputed market leader against which most comparisons will be made, the Nexus 7 is really a move against Amazon. The form factor and price pits it in direct competition with the Kindle Fire, Amazon's Android-based tablet launched in the US in the run-up to Christmas, although not yet available here. When it launched, the Fire was widely panned for substandard hardware and buggy software, and although the latter was belatedly fixed by updates, many believe that a desire to rush the Kindle out for a Christmas release date meant that it wasn't quite finished.

If the Nexus 7 can live up to its tech specs and deliver a polished experience, it will have a clear run at Amazon's market. And make no mistake, that is where it is heading. Google is selling the Nexus as a reading device, claiming it has "the world's largest ebook collection", while adding magazines to its app store, and by selling it at a deeply discounted price, it is clear its business model is far more Amazon than Apple: get the tablet into homes, and then profit on media sold for it. That also explains the Nexus Q, announced at the same event, which is a glowing little sphere which allows you to stream media from Android devices – and only Android devices – to TV screens.

Of course, the margins on media are razor thin. Apple runs its iTunes store at break-even, and makes the majority of its profit from hardware; Amazon rarely breaks down how well its digital divisions are doing, but they can't be that much stronger. But Google has another way to make money from the same business: data.

Unlike Apple and Amazon, it is primarily an advertising company; if it can work out how to make ads on tablets as valuable as print ads, through targeting and data-mining, it could change both industries for good.

The Nexus 7

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/