What will its major selling points be? That will be the big question.
Lots of people on the forums are underrating Amazon IMHO.
The major selling points:
1. The Amazon ecosystem.
2. Amazon.
3. The ecosystem.
Amazon has a considerable number of advantages over Google and Microsoft - its whole roots lie in purveying media and goods. The Google "Play" store is a joke by any comparison, e.g.
Their own device software operation doesn't compare to Apple's (but Amazon's own retail web, partner store, credit card and fulfillment operations are a huge and amazing monster chunk of software in their own right - which has to be at least as complicated and sophisticated (and well-executed) as any OS, so yes they know software).
And they don't have the world's hottest (or any) brick and mortar locations, but in other ways they surpass Cupertino in the "store" field - one example: You can even buy an iPad or Mac from Amazon, but you can't buy a Fire from Apple (or a PC or galoshes or toothpaste or.... ..millions of other things).
And in another way they have a cost advantage over Apple and (via!) Google. Google's committed to doing all their core OS development for them for free. And Amazon's free to "cut them off at the app store" with their fork of Android to grab the sales.
Not to mention they're building up a good number of years of device design and subcontracting now - you have to consider them more than a hopeless newbie as an electronics manufacturer now. They're no Apple by any means, but at low enough prices they don't have to be to carve out a niche with all their retail content and popularity. I'm a regular merch customer for one.
And cloud? Amazon's been running huge server farms much longer than Apple. They also host many other companies on their backbone. One of the big web backup companies I was considering for sure. Take out Amazon and see what happens to the internet. Whereas, take out facebook and lots of people would have to start doing things in the realer world, but otherwise, meh.
So I consider them the fourth contender behind Apple, Google and MS. And a dark horse that could make a good run with a nimble jockey and a few breaks.
(As for #2 and 3, Google's got a big early lead on MS, but MS has some institutional strengths GOOG doesn't - and both are prone to bone-headed costly moves. And either could be taken out - by the other, by AAPL or by... ...someone else.)
It's not gonna be facebook phones or Firefox phones or Blackberries (tho' running Win phone or Android with a keyboard could be a hail Mary). Or Open Web OS. Or Samsung. And Apple's got the lead in their own hands mindshare and profit-wise in some markets, and the lead period in others (esp. tablets).
But Amazon might have enough of the pieces, smarts and staying power to become a major player.
PS: Another reason why a 7.85" iPad makes sense for AAPL. It's very much in their strategic interest not to let Android or Amazon get too viable a niche that will feed other tablet developer communities - because that software will inevitably migrate up into the market for 10" tablets and start to take bits at least of market share from the market Apple now rules.
Whatever, don't be so quick to write off Jeff Bezos and Co.