If last year’s Android tablet news revolved around the Kindle Fire effect, the second half of 2012 may be based around the Nexus 7 effect.  Less than a month after its unveiling, the $200 quad-core Asus tablet is having an impact on other devices.  At least one analyst believes that the Google-backed 7-inch tablet is going to affect sales of other models, notably Amazon’s Kindle Fire.

Cowen analyst Kevin Kopelman has cut his forecast on sales of the Kindle Fire from 14 million down to 12 million in 2012 and says that overall Kindle growth expectations were unrealistic.  Of course these initial forecasts did not see Target removing the Kindle line from stores, nor did it see a tapering of positive reviews on Amazon’s website.  However, looking ahead at a rumored refresh, things could shift back in Amazon’s favor.  Unless Google goes big with advertising and retail availability of the Nexus 7, Amazon could jump back into the pole position with an inexpensive and more powerful Kindle.

CNET