Dawson said that the Nexus Q home media device posed some challenges as well.

According to him, it is very similar to the Apple TV launched in 2007 -- $299 for a device that streams content from the Cloud and attaches to a TV and other home media devices.

But with the current Apple TV selling for $99 and doing far more, including mirroring smartphone and tablet screens, there is little hope for Google's latest venture into the home entertainment space at three times the price, he said.

"Google's decision to manufacturer the device in the US may turn out to be a self-defeating PR move, given that it's the most logical reason for the inflated $299 price point," Dawson claimed.

However, Dawson also said that the latest version of Android includes some good improvements, including a competitor to Apple's Siri and a new service called Google Now which uses artificial intelligence to serve up information relevant to the user's context proactively.