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Amazon Kindle Tablet firing up Tablet growth numbers

Posted in Industry updates, Mobile Computing by Manas Ganguly on December 2, 2011

Nearly two years after Apple Inc. rolled out the iPad, a competitor has finally developed an alternative which looks like it might have enough of Apple’s secret sauce to succeed

Just two weeks after its introduction, Amazon’s Kindle Fire already is shaking up the market, with the device expected to surpass all other iPad rivals to take second place in the global media tablet business in the fourth quarter.Coming up from zero in the third quarter, Amazon will ship 3.9 million Kindle Fire tablets during the last three months of 2011, according to a preliminary projection from the IHS iSuppli Display Materials & Systems Service from information and analysis provider IHS (NYSE: IHS). This will give the company a 13.8 percent share of global media tablet shipments in the fourth quarter, exceeding the 4.8 percent held by No. 3 Samsung, and second only to Apple’s commanding 65.6 percent portion of the market, as presented in the table below.

The Kindle Fire’s rapid ascent will help fuel the expansion of the entire market, with the additional shipments contributing to a 7.7 percent increase in the IHS forecast of total media tablet shipments in 2011.

Amazon, with the Kindle Fire, has found the right combination of savvy pricing, astute marketing, accessible content and an appropriate business model, positioning the Kindle Fire to appeal to a brand-new set of media tablet buyers. Imagine a Walmart Hyperstore with individual 24*7 supply pipeline to the homes of each of its consumers. Amazon is dong just that with the Kindle in the Digital Space.

IHS now predicts global media tablet market shipments will amount to 64.7 million units in 2011, compared to the previous forecast issued in August of 60 million. The total shipment level represents 273 percent growth from 17.4 million units in 2010.The forecast for the following years also has been increased, with shipments expected to rise to 287.2 million in 2015, up from the previous forecast of 275.3 million. Sales of the Kindle Fire alone will account for much of the growth in sales. Dramatically reduced pricing in general in the non-Apple portion of the media tablet market also will play a role in expanding sales.

A departure from the earlier business and profit models

Most other Android tablet makers must earn a profit based on hardware sales alone. In contrast, Amazon plans to use the Kindle Fire to drive sales of physical goods that comprise the majority of the company’s business. As long as this strategy is successful, the company can afford to take a loss on the hardware—while its Android competitors cannot.

While Apple remains dominant in the media tablet market, speculation is rife that the company will respond to the Kindle Fire’s aggressive pricing with a lower-cost version of the iPad.

And Apple is expected to reply back…

A far more likely scenario is that Apple also may reduce the pricing on the iPad 2 when the company introduces the iPad 3. This will provide a value alternative for entry-level users in the same way that the company continued to offer the iPhone 3 when it rolled out the iPhone 4. This approach would allow Apple to maintain its target profit margins on both the iPad 3 and the iPad 2, while offering end-users an ever-expanding family of products.

All numbers are according to IHS iSuppli december 2011 estimates

Amazon Kindle Fire: Now we have something beyond iPad in Tablets!

Posted in Mobile Devices and Company Updates, Value added services and applications by Manas Ganguly on September 28, 2011

…is there some way that we can bring all these things (Amazon web services, Prime, Kindle, Instant video, the MP3 store and the Amazon appstore for Android) together into a remarkable product offering that customers would love.The answer is yes. It’s called Kindle Fire.”
Amazon CEO Jeff Bezos

Did the penny drop or the cookie crumble on Wednesday, the 28th September 2011 in the new wonder segment of devices: Tablets? It was about time.. users were waiting for a credible challenge to Apple’s iPad in the tablet segment. And while the 7” Android Kindle Fire doesnot exactly go head to head with iPad2, it does set the tablet segment up nicely. That was something that Androids and Blackberrys in spite of a considerable smart-phone presence have not been able to establish in the last 2 years. For starters, Kindle Fire sells for $200 (as against $400-$500 tag for 7” tablets), but it’s the little details that count and for Amazon, it’s the fact that this is an end-to-end device that really makes it outstanding. Kindle Fire is about the content and the content defines the Fire.

For starters, Amazon forked out a huge amount of customization on Android somewhere between Froyo 2.2 and Gingerbread 2.3 to a point where the Android interface seems to look very different from what it really is. Heavy modifications and kitsch on the Android platform apart Amazon made sure the mash-up works and works well. Amazon the great integrator balanced the Android topwork along with seamless integration with Amazon services.

Kindle Fire comes with a 1 GHz dual core processor, 7-inch capacitive touch screen with IPS display and a resolution of 1024×600, free cloud storage, 8 GB internal memory, battery life for 8 hours reading or 7.5 hours of watching videos and WiFi- nothing ground breaking in terms of device…. Except for the service integration- The cloud service which Amazon offers is the brightest part of Kindle Fire. 10,000 movies and popular TV shows, 800,000 books which cost $9.99 or less and 2 million free books – that’s the US customers get access to when they buy Kindle Fire. Amazon has also introduced a Silk Browser which is purported to be a new way of doing things on a tablet.

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