Wednesday, September 28, 2011

A Cheaper Tablet Arrives, Kindle On Fire

Hello tablet competition with the arrival of a new tablet from Amazon at a price point that just might make Apple and others blush. Priced at less than half the price of the iPad, the Kindle Fire may just appeal to the budget conscious consumer seeking a mobile screen for web connection. It may not offer some handy features like a "camera, microphone or 3G connectivity", it does connect to the web and enable streaming of all data. Listen to songs, watch a video, read a book, buy on Amazon, the Kindle Fire may be exactly what the consumer seeks in a lower cost model.

But if brand and the added capabilities that go with the Apple experience are what suit you, than price will not sway you from an iPad purchase. That is certainly what Apple hopes although their October press announcement could include some iPad updates. Still quiet is Barnes & Noble's Nook tablet. Staying on the sideline is not be a smart tactic and B&N is expected to have another trick up their sleeve in order to stay ahead of Amazon in the tablet race. The timing is certainly key as the Holiday Season is just around the corner.

The $199 price point is said to be a loss leader for Amazon. It's unique strategy is to get the Kindle Fire into many hands and make the return on the content that is purchased for the device. To this strategy, content is king, and Amazon needs to announce some unique, exclusive content to drive its distribution strategy. As Apple leads with a brand leader and market share, it is keen to make its return in the purchase and the content. Even without buying downloads, the iPad becomes an important companion in an Apple home, tied to the iPhone and mac. The introduction of the iCloud only solidifies that connectivity of devices. And for the Nook, a differentiation strategy is required to separate yourself from both the Kindle Fire, which shares your Google Android operating system, and the iPad. It's time to see more muscle.

So if you're waiting on the sidelines to buy a tablet, this Holiday could be your time. Enjoy!

No comments:

Post a Comment