Amazon has entered into Apple’s territory with its new Kindle Fire. This Android- based media tablet delivers digital media from the Amazon server right to its users. The new Kindle Fire is now the top selling electronics item on Amazon. One of the main marketing points of the Kindle Fire is its unbeatable price of 199$. Comparing this to Apple’s $499 iPad, this seems like a great deal. At $199, it is very easy to see why this Android is so desirable. It has a multi- touch display, a faster new web browser called Silk, and easy access to Amazon content such as Instant Videos, MP3 music downloads, and applications.
However, there are many differences between the iPad and the Fire that account for this price variance. There are only 15 percent of the number of apps available for the Fire compared to the iPad and also does not offer a 3G service, only WiFi. Also, there is not a lot of memory space (only 8 GB) which means you will have to be somewhat selective of what you save on your Fire.
“There are two types of companies: those that work hard to charge customers more, and those that work hard to charge customers less. Both approaches can work. We are firmly in the second camp.” Says Jeff Bezos.
It is important to realize that the Kindle is not meant to necessarily compete with the iPad, but rather Amazon is creating its own market for a new, low cost, high quality tablet. Amazon is doing what it does best and using their known strengths of price, convenience, and content. The Kindle Fire probably will not affect the sales of the iPad much, but Samsung, Motorola, and others will take a hit. “They don’t have the content and services that Amazon has to recoup what they don’t make on hardware sales. It creates a real dilemma for them”.