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Amazon Adds More Apps for Kindle Fire and Consumer Interest is High – Is It Time for Apple to Start Worrying?

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Amazon today announced that its new $199 Kindle Fire, which will go on sale next week, will feature apps from Facebook, Netflix, Rhapsody, Pandora and Zynga. Several thousand more apps will follow next week. Until now, there really wasn’t much of a market for tablets, there was really only a market for the iPad. Clearly, that’s changing very quickly, though. With Amazon and Barnes & Noble getting into the market, their cheaper (and smaller) tablets could hurt Apple’s position as the dominant tablet player.

While Samsung, Acer, Blackberry, Toshiba and all the other manufacturers weren’t able to sell any appreciable numbers of their tablets, things are finally looking up for Android tablets – though none of the current manufacturers are likely to play a major role during this year’s holiday season.

Just two years ago, it didn’t seem as if consumers would ever warm up to tablets, but Apple clearly showed that there is a lot of interest in these devices. With the backing of major brands like Amazon and B&N, the $199 Fire and $249 Nook Android tablets now stand a chance to challenge Apple’s early lead. The new tablets are, after all, significantly cheaper than Apple’s iPad 2. More importantly, though, the fact that there is already an existing software ecosystem for these new tablets out there will give shoppers the confidence that they aren’t losing much by choosing Amazon or B&N over Apple.

iPadVsAndroidTablet69% of Holiday Shoppers are Interested in Buying a Tablet this Year – And They are Considering the Small Android Tablets

According to a new study by consumer electronics review site Retrevo.com, 69% of U.S. consumers are interested in buying a tablet this holiday season (or are at least interested in learning more about them). Out of these, 44% would consider a 7” Android tablet and another 44% say they don’t know enough about Amazon’s tablet to make a decision yet. The Nook tablet was announced after this study ended, but chances are there will be similar interested in it as well.

In Retrevo’s study, slightly more respondents said they are planning to buy a Kindle Fire over the iPad (12% vs. 10%). That’s all very much within the margin of error and when it comes to making an actual purchase, these intentions often count for very little.

One interesting sidenote: a third of respondents in the Retrevo study thought the Kindle Fire was just another eReader from Amazon.

Given these numbers, I think Apple will have another great season for the iPad, but the cheaper, smaller Android tablets now stand a chance to take a major bite out of Apple’s market. Consumers who wouldn’t have considered a Samsung tablet will likely take a close look at the Fire or Nook tablets now and may just opt for these instead of paying more for an iPad.



6:48 pm


Kindle Fire: A Minor Threat to the iPad, Major Threat to Other Android Tablets

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Amazon’s Kindle Fire tablet runs Android, has a nice screen, is fast, cheap ($199), features an innovative browser, and – thanks to being an Android tablet at heart – offers support for thousands of apps out of the box. I doubt, however, that it’s a major threat to the iPad. The tablet manufacturers that should be very worried however, are those who are also in the Android business, including Barnes & Noble with its $249 Nook Color. The reason for this, I think, is Amazon’s superior ecosystem and the low, low price.

Before the Kindle Fire, There Was No Android Tablet Market

My basic theory of the tablet market until now was always that there really wasn’t one – there was only an iPad market (I must have picked this idea up from someone, but I can’t for the life of me remember where I first heard it). The Android tablets on the market today are about as expensive as Apple’s iPad, but consumers just don’t want them at that price point. In terms of hardware, they are often comparable with the iPad, though the software still lags behind in some areas.

When you talk about tablets to mainstream users, though, all they think about is the iPad. That may be due to Apple’s brand and smart marketing, or the failure of the other manufacturers to position and price their devices in the right way. The result so far has been very clear, though: Apple can barely keep up with demand and the others couldn’t find buyers.

The Kindle Fire: Let The Android Tablet Price Wars Begin

At $199, however, the Kindle Fire could change this. I doubt it will hurt the iPad (though it may siphon off some users), but it will hurt the other Android tablet manufacturers.

The Fire is a pared-down tablet – no doubt about it. It’s small, doesn’t feature a camera, and there is no optional 3G connection either. It’s a perfectly capable tablet, though, and does the things most users want to do on their tablets: surf the web (with the fast new Silk browser, that shouldn’t be a problem), read books, read magazines and watch movies and TV shows. All of this, Amazon is giving users for a price nobody else can currently match. There may not be a camera on the Fire, but I don’t think that’s a dealbreaker for many potential buyers. It does what most consumers want to do with their tablet and at $199, I wouldn’t be surprised if Amazon ended up with supply issues ahead of this year’s holiday season.

What About the Nook?

As a 7” tablet from a company known mostly for selling books, the Kindle Fire also obviously competes directly with the $249 Nook Color from Barnes & Noble. The price difference here may only be $50, but I doubt B&N will sell a lot of Nooks (even if they reduce the price to $199, too) given that Amazon’s ecosystem is vastly superior to B&N’s.

Will Users Want a Basic 7” Tablet?

The tablet market outside of the iPad world is still young. It still remains to be seen whether consumers will really take to smaller tablets. I have no doubt, though, that many will look at the full-price competition from Samsung, Acer and others and buy the $199 Amazon tablet instead (and maybe a basic $79 Kindle as a stocking stuffer as well).



4:58 pm


Amazon Announces $199 Kindle Fire Tablet, $149 Kindle touch 3G, $99 Kindle touch and $79 Kindle

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Amazon today unveiled its long-rumored tablet: the Kindle Fire. Based on Android, but with a custom-designed user interface, the Kindle tablet will cost $199 and go on sale on November 15. It’s available for pre-order now. The company’s founder and CEO Jeff Bezos also announced a new version of the Kindle eReader: the Kindle Touch. This device uses the same E-Ink display as the regular Kindle, but uses some basic multi-touch capabilities instead of the regular Kindle’s keyboard and buttons.  Pricing for the Kindle touch will start at $99 with support for Amazon’s Special Offers. If you don’t want to see Amazon’s ads on the device, you will have to pay $139. The version with support for 3G will set you back $149 with Special Offers and $189 without. Finally, Amazon is also launching a very basic Kindle model without touch or keyboard for $79 with special offers and $109 without.

As far as we can see, the current Kindle models with keyboard will remain on the market for the time being.

Kindle Fire

kindle_fireAmazon’s tablet doesn’t quite rival the iPad in terms of basic features. There is no 3G, no camera and no microphone, for example. It does, however, come with a 7” multi-touch capable 1024×600 glass display, a dual-core processor and 8GB of built-in storage.

Amazon promises about  8 hours of battery life of continuous reading or 7.5 hours of video playback (assuming the wireless is off). It should take about 4 hours to fully charge the device.

Amazon, of course, is also using its current library of books, magazines and videos to market the device. The Kindle Fire will have easy access to all of Amazon’s products. The company is also expecting to see special interactive editions of numerous magazines (including Vanity Fair, Wired, and GQ) for the Kindle Fire.

As far as standard Android apps go, the Kindle Fire will support Amazon’s own Android App Store, which currently has about 10,000 apps in it.

As far as the specs go, the Kindle Fire is comparable to the Nook Color in most respects (the screen size, weight and battery life are virtually identical, though the Nook only has a single-core processor). The $199 price point sets it apart from its competition, though. The Nook Color costs $249.

Browsing with Amazon Silk

silk_browserOne surprising feature of the Kindle Fire is the new built-in Silk browser. With Silk, Amazon is rethinking how a browser should work in the age of cloud computing (though one could argue that Opera Turbo already pioneered some of its technologies). Silk uses Amazon’s EC2 cloud computing network to offload a lot of the computing necessary to render a page. Amazon will also pre-load pages it feels sure you will visit next. The browser also keeps a persistent connection to the EC2 network open so that it can respond to new requests faster.

The New Kindle Lineup:

(click on image to see a larger version)

new_kindle_lineup



3:45 pm