Google Touch-Screen Chrome May Cannibalize Android - Google's (GOOG) Chromebooks are reportedly getting an update that will put them head-to-head with Microsoft's (MSFT) new touch-screen Windows 8 software, as well as Google's own Android software.
Chromebooks — laptops that operate almost exclusively in the cloud via a Chrome operating system — reportedly will add touch-screen models later this year, according to a Wall Street Journal report.
Google shares were about even in the stock market today.
It's been rumored for a while that Chromebooks would add touch-screens, and Google CEO Larry Page hinted at that in the company's Q4 conference call in January.
"Distinctions between devices, form factors, are becoming less meaningful," Page said, "particularly between desktops, laptops and tablets."
Production of the touch-screen notebooks was first reported in November 2012 by Commercial Times, a Chinese-language newspaper that covers Google's supply chain. Commercial Times also reported that Google was working on a tablet that would use the Chrome operating system.
At that time, Global Equities analyst Trip Chowdhry said that adding touch-screens to Chromebooks will muddy the distinction between Google's Android software and Chrome software. That could possibly lead to cannibalization of Android users, he says.
"If Chrome gets touch, then how will it be different than Android?" Chowdhry said then. "Google needs to make it really clear what Chrome and Android are, because for Chrome to be successful they shouldn't merge."
Google refreshed its Chromebook line last year with lower-priced models, including an Acer model for $199 and a Samsung model for $249.
But the laptops haven't made much of a dent on the market, and sales were "insignificant" during the 2012 holiday shopping season, NPD Group retail analyst Stephen Baker told IBD in December. ( Investor's Business Daily)
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