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

AppleInsider · September 28, 2011 9:17AM

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.

[ View this article at AppleInsider.com ]

matrix07 · September 28, 2011 9:21AM

Good strategy. Why discount it later when you can discount it now and get "hyped".

bloggerblog · September 28, 2011 9:24AM

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

rbonner · September 28, 2011 9:26AM

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

emacs72 · September 28, 2011 9:27AM

Quote:

Originally Posted by bloggerblog

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

the Kindle Fire neither was nor ever intended to compete directly against the iPad.

macinsider2 · September 28, 2011 9:30AM

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

gatorguy · September 28, 2011 9:30AM

Quote:

Originally Posted by bloggerblog

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.

robodude · September 28, 2011 9:32AM

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.

icarbon · September 28, 2011 9:32AM

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.

rbonner · September 28, 2011 9:33AM

Quote:

Originally Posted by MacInsider2

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.

mazda 3s · September 28, 2011 9:34AM

They also just announced a $79 "regular" Kindle and a $99 Kindle Touch

suddenly newton · September 28, 2011 9:37AM

In other news, Amazon to stop making fun of eReaders with LCD screens in their Kindle ads.

emacs72 · September 28, 2011 9:37AM

Quote:

Originally Posted by Robodude

... 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.

applecation · September 28, 2011 9:37AM

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.

leryman · September 28, 2011 9:37AM

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.

tjw · September 28, 2011 9:38AM

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.

doctor david · September 28, 2011 9:38AM

Quote:

Originally Posted by Gatorguy

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.

un_plug · September 28, 2011 9:42AM

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.

hankx32 · September 28, 2011 9:43AM

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.

conradjoe · September 28, 2011 9:43AM

Quote:

Originally Posted by tjw

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.

quicksilverhuh · September 28, 2011 9:44AM

and I think it will have an impact on IPAD sales

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

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