Amazon’s new cut price tablet to take on Apple

Amazon has unveiled possibly the biggest challenger yet to Apple’s iPad in the tablet market: the Kindle Fire.

/q/l/l/amazon160.jpg

Watch Amazon’s advert for the Kindle Fire below

Amazon has unveiled possibly the biggest challenger yet to Apple’s iPad in the tablet market: the Kindle Fire.

The online retailer’s 7-inch tablet wi-fi only will cost $199 (£127) in the US, undercutting almost all of its new-found rivals in the market, including Apple, Samsung and RIM.

The device will only be available in the US at launch and may not roll out in other territories due to the fact that is linked to Amazon Cloud data storage service, which for legal reasons is not available outside the US. It can, however, be shipped to other countries from the US.

The Kindle Fire will operate an Android operating system, which will include a new web browser called Amazon Silk. The system allows users to sync all their e-books, music, video and other digital assets via a wireless service, with all content backed up for free on Amazon’s servers.

Speaking at the Kindle product launch, which also included other e-reader devices, Amazon chief executive Jeff Bezos says: “These are premium products at non-premium prices. We are going to sell millions of these.”

Amazon’s shares in pre-morning trading were up 3.5% following the tablet announcement. Barnes & Noble, Amazon’s biggest US competitor in the e-reader space, saw its shares drop 6.2%. Apple’s shares also took a slight hit, dipping 0.5%.

Forrester Research analyst Sarah Rotman Epps predicts Amazon will sell “millions” of tablets given its low entry price and that rapid adoption will give app developers a reason to develop Android apps over Apple.

“Apple’s place as market leader is secure, but Amazon will be a strong number two, and we expect no other serious tablet competitors until Windows 8 tablets launch,” she says.

Apple dominates Europe’s tablet market, with a 67.% share in the second quarter of 2011, according to IDC. Its closest competitor was Samsung, with 7% of the market.

https://www.youtube.com/watch?v=jUtmOApIslE

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here