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Amazon Kindle Fire aims to undercut Apple's iPad with $199 price

post #1 of 303
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Amazon on Wednesday unveiled its new Kindle Fire touchscreen tablet, an Android-powered device with a 7-inch display that will sell for just $199, or less than half of Apple's entry-level $499 iPad.

The details of the new Kindle Fire were leaked ahead of Wednesday's official announcement by Bloomberg, which revealed that the device will have Wi-Fi connectivity, but no 3G. It will also come with a 30-day free trial of Amazon Prime, a $79-per-year service that includes free two-day shipping of purchases and some streaming video content.

The device was described as a "souped-up version of the Kindle electronic-book reader" that will run the Google Android mobile operating system. It said that Amazon "painted over the rough surfaces" of Android with a "fresh and easy-to-use interface."

The Kindle Fire will begin shipping on Nov. 15, and customers can now preorder the device. Features of the hardware, as touted by Amazon, include:
18 million movies, TV shows, songs, magazines, and books
Amazon Appstore - thousands of popular apps and games
Ultra-fast web browsing - Amazon Silk
Free cloud storage for all your Amazon content
Vibrant color touchscreen with extra-wide viewing angle
Fast, powerful dual-core processor
Amazon Prime members enjoy unlimited, instant streaming of over 10,000 popular movies and TV shows


AppleInsider first reported on Monday that Amazon will build an initial run of 3 million of its new color touchscreen tablet, code-named "Hollywood." It will run on the older OMAP3430 processor from Texas Instruments.

Analyst Ming-Chi Kuo was also first to reveal to AppleInsider that the bill-of-materials for the Kindle Fire will be around $180, which has allowed the retailer to sell the device at the aggressive $199 price point.



Amazon is said to be first releasing a 7-inch tablet to test the market, ahead of devices with larger form factors potentially arriving in 2012. At 7 inches, the Kindle fire is smaller than the 9.7-inch display of Apple's iPad.

Kuo said that Amazon is working on a 10.1-inch device code-named "Coyote" aimed to compete more directly with the iPad when it arrives in 2012. The company is also said to be preparing an 8.9-inch device for release in the second half of 2012.



Unlike Amazon's previous e-ink-based Kindle devices, the Fire sports a color LCD touchscreen which allows for activities beyond reading. Amazon plans to sell movies, games and other content for its new 7-inch tablet.
post #2 of 303
Good strategy. Why discount it later when you can discount it now and get "hyped".
post #3 of 303
It's not in the same category as an iPad. The Coyote might be but for now this thing is a slow poke.
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post #4 of 303
The big seller for the kindle was reading in the sun, thinking it will loose that edge.
post #5 of 303
Quote:
Originally Posted by bloggerblog View Post

It's not in the same category as an iPad.

the Kindle Fire neither was nor ever intended to compete directly against the iPad.
post #6 of 303
Not sure how anyone can weigh in on this yet given we have no idea on the exact capabilities/specs of the Fire
post #7 of 303
Quote:
Originally Posted by bloggerblog View Post

It's not in the same category as an iPad. The Coyote might be but for now this thing is a slow poke.

It's not meant to directly compete with the iPad.

Something to consider tho: If a customer purchases one of these, the purchase of another slate/tablet product in the near future is less likely. A lot of buyers will find it's more than good enough for their needs and wants. Apple's iPad sales will be affected even tho the Kindle Fire is not a direct competitor.
melior diabolus quem scies
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melior diabolus quem scies
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post #8 of 303
Amazon are kings of content, but I doubt the UX can match what Apple has to offer. The Kindles they've announced thus far look pretty good though.
post #9 of 303
maybe I've been reading the wrong articles, but my understanding was that the Coyote was the 7-incher and the Hollywood was the 10.1

My main interests are whether it's a simple color display, or have they figured out how to do e-ink in color. Makes a huge difference in terms of long-term reading comfort. Also, is it as light as a kindle?

if not, it better be as fast as an iPad.
post #10 of 303
Quote:
Originally Posted by MacInsider2 View Post

Not sure how anyone can weigh in on this yet given we have no idea on the exact capabilities/specs of the Fire

I assume it is not e-ink anymore since it's running android.
post #11 of 303
They also just announced a $79 "regular" Kindle and a $99 Kindle Touch
post #12 of 303
In other news, Amazon to stop making fun of eReaders with LCD screens in their Kindle ads.

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"Apple should pull the plug on the iPhone."

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post #13 of 303
Quote:
Originally Posted by Robodude View Post

... I doubt the UX can match what Apple has to offer.

the Kindle Fire exists in a different market than the iPad so comparing UX is silly and unnecessary.
post #14 of 303
I can see where this might become popular at this price.
Amazon already has content and a decent web experience.
It is my go-to place for most purchases.
Apple has this one-stop shop with iTunes that provides a good experience with their devices.
Amazon is already setup with their site to provide a similar experience.

I don't think this is any kind of an iPad killer (I am certainly not switching). But, Amazon might be in the best position to provide a good all-around experience to finally provide some competition for Apple.
post #15 of 303
i GUARANTEE this thing will got straight to the top of Amazon's BOGUS best seller lists.

Hmm, I notice that Amazon apparently doesn't sell the iPad, Apple isn't even mentioned on their tablets page.
post #16 of 303
This could well stop me getting an ipad. I want a tablet for viewing content and lying on the sofa web browsing. For less than half the price I can get something that pretty much meets my needs from amazon.

Like others have said, it is not a direct competitor but a good interpretation of what many people want a tablet for and a huge amount cheaper. I am sure this will take away some sales from apple.
post #17 of 303
Quote:
Originally Posted by Gatorguy View Post

It's not meant to directly compete with the iPad.

Something to consider tho: If a customer purchases one of these, the purchase of another slate/tablet product in the near future is less likely. A lot of buyers will find it's more than good enough for their needs and wants. Apple's iPad sales will be affected even tho the Kindle Fire is not a direct competitor.

So in other words it will compete with the ipad. Just not that well.
post #18 of 303
This is definitely their R&D model using real customers as guinea pigs. To work out all the kinks before coming out with an actual tablet to compete with the ipad.
post #19 of 303
I don't like how when I'm writing an email and my gmail account underlines the word iPad in red, shit even AI underlines it, iPod however does not come up misspelled.
post #20 of 303
Quote:
Originally Posted by tjw View Post

This could well stop me getting an ipad. I want a tablet for viewing content and lying on the sofa web browsing. For less than half the price I can get something that pretty much meets my needs from amazon.

I hear that it will come complete with a belt sander for paring down your fingertips to little nubs.
post #21 of 303
and I think it will have an impact on IPAD sales
post #22 of 303
Quote:
Originally Posted by Doctor David View Post

So in other words it will compete with the ipad. Just not that well.

They may both be considered by the same buyers, so yes you could look at that way. Either device might be considered to compete "not that well" depending on what a buyer wants one for or expects of it.
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post #23 of 303
Quote:
Originally Posted by rbonner View Post

The big seller for the kindle was reading in the sun, thinking it will loose that edge.

True , but I am replacing my dx with one of those little e-ink touches (looks like e-ink anyway). That and my iPad together will b perfect for traveling.
post #24 of 303
Quote:
Originally Posted by quicksilverhuh View Post

and I think it will have an impact on IPAD sales

Mmm, nah.

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post #25 of 303
Well, the Kindle Fire will be the "iPad" everyone got because they couldn't or didn't want to get the iPad. At best.
post #26 of 303
Quote:
Originally Posted by ConradJoe View Post

I hear that it will come complete with a belt sander for paring down your fingertips to little nubs.

why would it come with that? insult removed
post #27 of 303
Quote:
Originally Posted by quicksilverhuh View Post

and I think it will have an impact on IPAD sales

Yup, more people will buy the iPad when they realise the limitations of the Kindle Fire. Call me a fanboy but I'm not feeling this Kindle Fire. I could be wrong, and hope that there is some real tablet competition but these other tablet makers are not "getting" it. 7"... it's a gimmicky kind of size for what it hopes to achieve. A slower processor, 7" and half the iPad price tells me Amazon is still in trial mode. And that's not good enough for customers these days.

As for Amazon's e-Readers, yes they have some decent momentum but remember e-Readers are big in mostly Western countries but not Asian markets. I don't have a link but that's my gut feeling. Maybe e-Readers for traditional and simplified Chinese would be increasingly successful but not English e-Readers in Asian countries, particularly greater China. Also, has anyone looked at the age demographic for e-Readers? I think they are probably skewed towards older adults.
post #28 of 303
Quote:
Originally Posted by nvidia2008 View Post

Well, the Kindle Fire will be the "iPad" everyone got because they couldn't or didn't want to get the iPad. At best.

people should really stop being so overly defensive. the Amazon Kindle Fire exists in a different market than the Apple iPad. both products will do just fine; seriously.
post #29 of 303
Quote:
Originally Posted by nvidia2008 View Post

Well, the Kindle Fire will be the "iPad" everyone got because they couldn't or didn't want to get the iPad. At best.

Wow, if you don't buy Apple, you're a loser. Niiiiiiice.
post #30 of 303
Quote:
Originally Posted by Gatorguy View Post

It's not meant to directly compete with the iPad.

Something to consider tho: If a customer purchases one of these, the purchase of another slate/tablet product in the near future is less likely. A lot of buyers will find it's more than good enough for their needs and wants. Apple's iPad sales will be affected even tho the Kindle Fire is not a direct competitor.


Maybe persons using the kindle will become accustomed to the form factor for this device which they wouldn't normally buy, but this price point allows them the 'luxury'.

Maybe next saturday at the mall they take a closer look at the iPad and realize they've got to have one for all the other things on it. Not the least of which are the apps.

I've grown so accustomed to the iPad in couch potato mode that I've all but quit all the other macs we have. I wouldn't want one that does any less than the iPad.

Methinks this will be free advertising for the iPad, over time. Especially when 3 comes out. Come on!
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What is really factored into the price is a kind of perpetual sense of disbelief that any company could be as good as Apple is. ~Retrogusto
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post #31 of 303
Quote:
Originally Posted by tjw View Post

This could well stop me getting an ipad. I want a tablet for viewing content and lying on the sofa web browsing. For less than half the price I can get something that pretty much meets my needs from amazon.

Like others have said, it is not a direct competitor but a good interpretation of what many people want a tablet for and a huge amount cheaper. I am sure this will take away some sales from apple.

It is well positioned not to be a direct competitor. It might not take much sales away, even if it is successful. The market is more supply constrained than demand constrained.

Still, looks like Amazon has the possibility to be the second successful company in the tablet space.
post #32 of 303
Financial Times: "Amazon has launched a head-on challenge to the dominance of Apple's iPad..."

Hardly. It's an in-between device that doesn't stack up to the iPad in many ways. They went in a slightly different direction, and I bet they'll sell a good number of them. I'd rather put the money toward an iPad 3.

They're showing Bezos on CNBC. He sounds bored by his own presentation. Very bored.
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post #33 of 303
Quote:
Originally Posted by tjw View Post

why would it come with that? Idiot

7 inch tablets are too small for any normal person's fingers.

While one could increase the resolution of the display to make up for some of the difference, it is meaningless unless your tablet also includes sandpaper so that the user can sand down their fingers to around one quarter of their present size.
post #34 of 303
Quote:
Originally Posted by tjw View Post

why would it come with that?

So did the insult serve to display your personal lack of knowledge or something?

Steve Jobs said about 7" tablets that they ought to be sold with sandpaper to sand your fingers down so that the tablet becomes usable. It's too small.

For heaven's sake, you really think your lack of knowledge deserves insulting other people?

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post #35 of 303
Quote:
Originally Posted by emacs72 View Post

the Kindle Fire exists in a different market than the iPad so comparing UX is silly and unnecessary.

Like the iPad won't eventually compete with Laptops and isn't already competing with Netbooks?

Despite what you say there is overlap. After getting an iPad, the misses' mother decided a Kindle would be better for her use cases. It seems, despite the iPad not having enough functionality (per pundits, etc) there is a market for a device with even less capabilities than the 'pad. For a certain price.
post #36 of 303
Quote:
Originally Posted by Gatorguy View Post

It's not meant to directly compete with the iPad.

Something to consider tho: If a customer purchases one of these, the purchase of another slate/tablet product in the near future is less likely. A lot of buyers will find it's more than good enough for their needs and wants. Apple's iPad sales will be affected even tho the Kindle Fire is not a direct competitor.

You're just making crap up.
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post #37 of 303
Quote:
Originally Posted by tjw View Post

why would it come with that? insult removed

He was referring to this: http://thenextweb.com/apple/2010/10/...their-fingers/

Note that almost everything Jobs said has more or less come true. Note the date of the article. Monday October 18, 2010. One year on, vindication is probably not as sweet given he has resigned from being CEO, but still, he was more or less spot on about 7" tablets being DOA. And that competitors would have trouble matching their pricing.

And other things including "RIM not catching up to Apple in the foreseeable future".
post #38 of 303
I think this is a bold move from Amazon, and they'll carve out a good portion of the pie. $200 for the Kindle Fire is a very attractive price while their E-ink Kindles are essentially going for dirt cheap ($79 to $149).

If the "tablet" or "post-PC" market is to be the next big thing, with 1+ billion devices sold per year (which is about 2.5x the rate of PCs), there will be room for the entire industry to sell to with prices ranging from $50 to $2000.

The key for Apple is always to dominate the premium end where all the profits are. Dominating with 50% marketshare as a device maker just isn't in the cards for Apple. There are to many opponents in all of the industries from the content providers, carriers, devices makers, rivals, et al.
post #39 of 303
Quote:
Originally Posted by Shrike View Post

Dominating with 50% marketshare as a device market just isn't in the cards for Apple. There are to many opponents in all of the industries from the content providers, carriers, devices makers, rivals, et al.

Tell that to the iPod.
post #40 of 303
Quote:
Originally Posted by tjw View Post

Another insult removed.

Originally Posted by asdasd

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Originally Posted by asdasd

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