Monday, September 26, 2011

Amazon Comin' Yo

So Amazon has decided to unveil a new tablet:
(Reuters) - Amazon.com Inc (AMZN.O), which revolutionized reading with its Kindle e-reader, is expected to unveil a tablet computer next week that analysts say will seriously challenge Apple's (AAPL.O) market dominating iPad.
Indeed, the big question is whether it will challenge Apple's iPad. The iPad has been hugely successful and Apple is selling every tablet that they can make. Everyone wants to know if Amazon's tablet, which will reportedly be called the Kindle Fire, will be a threat to the iPad:
Ultimately, it’s a question of how much Amazon has in common with Apple. If they have enough of the same DNA, that fact may separate the color Kindle apart from every other Android tablet on the market — and give Cupertino a run for its money.
The big deal with Apple has been their execution in delivering their products and for the iPad, it's been with Apps:
Today, there are almost half a million iPhone and iPod apps. In the space of less than two years, there are almost 100,000 iPad apps. I don’t know exactly how many Android tablet apps there are, but I do know that any time I’ve used an Android tablet, I have a heck of a time finding decent Android tablet apps (there are thousands of excellent Android phone apps). Tablet developers are clearly building their iPad versions first and, given the 25 millions iPads already sold, likely achieving their greatest success on the iOS platform.
Mashable believes that Amazon has a similar built in ecosystem that'll enable the Kindle Fire to thrive:
Amazon has one big advantage over virtually every other Android Tablet manufacturer: it understand user interfaces. No other competitor, aside from Apple, runs such an active and varied website for consumers. The Seattle-based retailer has been perfecting Amazon.com’s interface for 16 years. When Amazon was just books, it was pretty straightforward — but as the company added other product categories, it struggled to find an rational interface metaphor. Even so, Amazon was the acknowledged leader in the space. When it introduced tabs, all other online retail sites tried them as well.
Then there's pricing:
But I doubt Amazon cares if it takes a small loss on the tablets. They’ll be putting a fully functional, Internet and media-ready portal to all of its products in the hands of millions of existing customers. (How many people do you know who do not have an Amazon account?)
Amazon has features like Amazon Prime and the Amazon App Store which can give it a pricing advantage over the iPad, while still being a profitable entity for the company.

PC World says Amazon needs to get this right:
The hat trick with an Amazon tablet will lie not with whether Amazon can offer a device that integrates its storefront and services—that's an easy bet, and a foregone conclusion given its history with Kindle e-readers. The real question is whether the company can produce a tablet with an interface that's natural, visually pleasing, and functionally spot-on for how it will be used by consumers.
The Tablet market isn't easy to break into:
If, with this tablet, Amazon can finally make a product that's a standout star with its interface and usability, the tablet has legitimate potential to be a threat to Apple's iPad. But if the company doesn't nail the interface, it runs the risk of offering yet another ho-hum tablet in a crowded landscape, albeit a ho-hum tablet with, presumably, a better-integrated media consumption and e-book experience than most. One can hope.
Amazon is late to the Tablet party, but only Apple is really having fun in the party. Other companies have made attempt to compete with the Cupertino giant, but have come up short. The iPad is a jack of all trades, and it has the support of Apple's application Arsenal. Amazon seems to be the one company that can compete with Apple on the application front, with its App Store, but the fact is the tablet, itself, has to be good in order to compete.

Amazon is taking a risk by entering the tablet market, but if they get it right, it could be a huge win for the company.

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