Ticonderoga notes Kindle Fire targets different market than Apple's iPad 2
A note issued Brian White of Ticonderoga Securities says there is a market for Amazon's new Android based color Kindle Fire model, but that it is "not the market that Apple is addressing."
White wrote that "while Amazon's price point, installed base, digital content and cloud ecosystem will attract a certain consumer demographic to the Kindle Fire, there is still no real competitor to the iPad 2, in our view."
Instead, the analyst stated, "essentially, we believe the Kindle Fire addresses a different market than the iPad 2, a tablet-light user on a tight budget that may not have yet purchased a tablet or already use a Kindle."
While half the price of Apple's tablet, the Kindle Fire "lacks the enhanced capabilities, aesthetics, power and rich features found on the iPad 2," White said.
"We find the 7-inch screen too small for a tablet device as Steve Jobs has previously highlighted, while the lack of a 3G connection will keep consumers confined to a Wi-Fi world. We believe Apple's long history as both a hardware and software company will continue to drive greater technological innovation in the tablet market versus Amazon. Also, the aesthetics of the Kindle Fire seem tired to us and clearly pale in comparison with the iPad 2."
White wrote that "while Amazon's price point, installed base, digital content and cloud ecosystem will attract a certain consumer demographic to the Kindle Fire, there is still no real competitor to the iPad 2, in our view."
Instead, the analyst stated, "essentially, we believe the Kindle Fire addresses a different market than the iPad 2, a tablet-light user on a tight budget that may not have yet purchased a tablet or already use a Kindle."
While half the price of Apple's tablet, the Kindle Fire "lacks the enhanced capabilities, aesthetics, power and rich features found on the iPad 2," White said.
"We find the 7-inch screen too small for a tablet device as Steve Jobs has previously highlighted, while the lack of a 3G connection will keep consumers confined to a Wi-Fi world. We believe Apple's long history as both a hardware and software company will continue to drive greater technological innovation in the tablet market versus Amazon. Also, the aesthetics of the Kindle Fire seem tired to us and clearly pale in comparison with the iPad 2."
Comments
Ditching the physical keyboard is also a +++ in my opinion. The product is finally mature enough.
This device has a different demographic - and for what that demographic wants - this item is far from "tired" - it is a quality device at a great price.
They will sell millions.
If you are looking to this person for investment advice - you stand to lose money.
He is like the broker who "Could have made me a millionaire! .....If I had started with 10 million!"
'Nuff said.
There's no doubt that Apple's hardware is better. But they will compete against one another, and at that price point the Fire will be "good enough" for a lot of people.
Everyone does the iPad comparison, but to my mind the people who just got really screwed are Samsung, HTC, RIM, and the like.
There's Apple, now there's Amazon, and then there's everyone else...
So far none of the 7" tablets have sold well. I wonder if this will be any different.
I hope Apple come back fighting with a radical new iPod Touch but I'm not holding my breath.
Well no ****, Sherlock.
Where can I get a job coming up with this stuff?
I can't imagine it's going to be much fun watching a tv show or film on the 7" screen, although I can see a lot of parents buying one for their kids just because it's cheap.
So far none of the 7" tablets have sold well. I wonder if this will be any different.
I hope Apple come back fighting with a radical new iPod Touch but I'm not holding my breath.
I wouldn't even bother to watch a movie on my 9.7" iPad and I think that many people don't know this, but 7" is less than half the size of an iPad. It's tiny in comparison.
While I own an iPad and think it is a great device - I think the condescension at the end of his statement - "tired" might be missing the mark...
This device has a different demographic - and for what that demographic wants - this item is far from "tired" - it is a quality device at a great price.
He's calling the esthetics "tired," not the hardware or quality. However, I do agree that he's being stubbornly dismissive. I have an iPad, but I'm going to buy one of these to see what the Kindle is all about, and just because it's so inexpensive. At $100 there is a market. Doesn't mean they can sustain it when selling at a loss, but there is a market. The only sad thing is that if Amazon fails, and you heard it here first, there will be a "Fire Sale"
Web browsing, email, books, and video is what the iPad is known for. Apps are nice, but not always crucial thanks to cloud computing.
I wouldn't even bother to watch a movie on my 9.7" iPad and I think that many people don't know this, but 7" is less than half the size of an iPad. It's tiny in comparison.
Agreed, it's tiny compared to the iPad. I had a play with the Samsung 7" Tab when it launched and was not impressed. Judging by the poor sales a lot of people obviously felt the same.
One of the reasons I bought the iPad was so I could watch videos while travelling and away from home and to be honest the 9.7" screen isn't half bad. It's comfortable to watch for extended periods. A retina screen would be even better for HD content but that's for the future.
I can't imagine it's going to be much fun watching a tv show or film on the 7" screen, although I can see a lot of parents buying one for their kids just because it's cheap.
So far none of the 7" tablets have sold well. I wonder if this will be any different.
I hope Apple come back fighting with a radical new iPod Touch but I'm not holding my breath.
The 10 inch is coming (I'd guess after the new year).
While this 7 inch doesn't compete hard with the iPad - a 10 inch one will. Amazon has alot to deliver on first though.
ahmlco said it correctly - once this product is out there it will be Apple & Amazon (both with valid solutions) and everyone else (still thinking tablets should work like the pc marketplace)
I can smell it.
The 10 inch is coming (I'd guess after the new year).
While this 7 inch doesn't compete hard with the iPad - a 10 inch one will. Amazon has alot to deliver on first though.
ahmlco said it correctly - once this product is out there it will be Apple & Amazon (both with valid solutions) and everyone else (still thinking tablets should work like the pc marketplace)
In two years I see the tablet market broken down like.....
iPad with the most market share....say 40%
Kidle righ behind it
Windows 8 dominating 70+% of corporate tablets
Everything else based on some Google code.
Think of it as a more capable kindle rather than a less capable iPad. Millions bought smaller B&W kindles for $149 (less now). So add color, much broader media access and rudimentary browsing and $199 sounds pretty good. iPad is a larger and more fully capable computing device, putting it in a totally different market. Many are simply seeking portable media consumption and would never have spent $500 on iPad. I'm betting this will be a huge holiday hit. (disclaimer: i own neither kindle nor ipad because, with my MBAir, i can't see the value-added in either case.)
"rudimentary browsing"
???
It is based on webkit at its root, it supports flash and offloading to Amazon's servers....much like Opera does with its mobile browser.
Many people see the iPad as an expensive consumption device with no rival....until today.
But as noted above, the people who should be really worried are the other hopefuls in the Android tablet scene.
7" will work fine for most - kids definitely - this is the perfect kid tablet - if you can get some nice parental controls on it - the combination of price and performance can't be beat.
2) The UI looks very smooth and refined in this video: http://gizmodo.com/5844742/video-of-...ction-up-close