General

Last week, Google announced a new 7-inch tablet called the Nexus 7. Now rumors are flying that Apple, which has so far dominated the growing tablet market — which, arguably, is the future of computing — is set to fire back with a smaller tablet of its own. As Peter Burrows and Adam Satariano of Bloomberg report:

A smaller, less expensive iPad could undercut the ambitions of Google, Microsoft and Amazon.com Inc. (AMZN) to gain traction in the advancing tablet market, said Shaw Wu, an analyst at Sterne Agee & Leach Inc. The new device will probably have a price closer to Google’s Nexus 7 tablet and Amazon’s Kindle Fire, both of which have 7-inch screens and cost $199.

“It would be the competitors’ worst nightmare,” Wu said in an interview. “The ball is in Apple’s court.”