Android smartphones are growing by leaps and bounds, but Android tablets are not doing too well when compared to the iPad. This is why Google is planning on selling co-branded tablets directly to consumers through an online store like Apple and Amazon. Google tried this before with the Nexus One smartphone, but that project was scrapped after seeing how other Android-powered smartphones were selling better.
Samsung and AsusTeK Computer will be responsible for the hardware. Tablets offered by Motorola will also be in the online store. Last year Google CEO Larry Page said that the company was going to generate over $2.5 billion in revenue from mobile devices by selling online ads on smartphones.
Some people said that the Nexus One smartphone experiment was a failure, but Andy Rubin said that they sold over 100,000 of those phones in three months and broke even on their investment. The Nexus One was difficult to scale on a global scale because of the various telecommunication networks. Fortunately tablets primarily use WiFi connections.