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The Amazon Effect.

Amazon Kindle Fire have done several things that will change the industry forever. Hence, it should be considered a landmark launch.

Expected Changes

1. Huge fall in all Android tablet prices.

2. Further squeezing the bottom-lines of a number of companies, resulting in lesser margins and weaker players exiting market.

3. Ending the e-ink versus LED debate. Apple won.

4. The end of iBookstore.

5. Google purchase of Motorola Mobility could spell trouble.

However, as highlighted by a number of users, the machine is subsided by future content purchase. In another words, the profit margin could be negative. If the content sales are hit by pirated activities like jailbreak and virus intrusion which is super-easy for Android devices, this could spell the end for moving onto Android devices.

Kindle is also taking a huge bet on the cloud services. However, with a 8gb and wifi, and not 3G, a universal access to cloud could be problematic and slow. This could add on to problems.

Finally, what Apple taught us is that cutting prices is not the answer to being cool on the block.
 
This could be a very successful device and with its price point, grab some decent marketshare from those individuals who find it difficult to throw down $500+ on a traditional tablet. I personally do more reading and light browsing on my iPad than anything heavy or serious. Certainly nothing that I couldn't do on my phone. The extra power and features of many of today's tablets are not a critical value element to me.

And as for the "ecosystem" abandonment concern that some have, I think people will survive. I wouldn't be surprised to find that the ecosystem value is not a critical influencer over their buying decision.
 
Half of you people are missing the point'

this thing is two-fifths the price of the cheapest iPad 2. These are the definition of luxury devices...no one is buying a tablet based out of necessity

a product that (TO THE AVERAGE CONSUMER) replicates a lot of the iPads functionality and leverages the Amazon brand at less than half the price will clean up

i'm an apple diehard but i'm more a diehard about making profit and amazon has got it right here.
 
The Fire is nice and all but the $199 price is deceptive. To have any constant content on it you have to buy it from Amazon and purchase the yearly $79 Prime membership.

I can see the cost of the Fire rapidly increasing with usage.

Oh and owning an Ipad is free after the original purchase.
Come on mate....show a little bit of objectivity!
 
And as for the "ecosystem" abandonment concern that some have, I think people will survive. I wouldn't be surprised to find that the ecosystem value is not a critical influencer over their buying decision.

Thing is, there IS a thriving ecosystem within Amazon.

If you're a frequent online purchaser, Amazon is the go-to place to buy most products as their pricing is almost always competitive.

Couple that with their Cloud Service (AWS)
Free Cloud Storage
Freemium content (amazon prime videos)

To the folks that say Amazon doesn't have its own ecosystem, are extremely ignorant.
 
i really don't think the iPad has anything to worry about. If you're in the market for an iPad, you're not in the market for a Kindle.

It's like comparing a Mercedes and Ford Focus.

Good analogy. You are right, HP, Samsung, etc... were trying to sell the Ford Focus for prices close to the Mercedes, but not quite.

Now Amazon introduced the Ford Focus, with a Ford Focus pricetag.

Those who want a Mercedes would still buy a Mercedes, but there are those who commute via the train and really don't need a car at all. If they are to buy a car, before they can only buy a Mercedes.

Now they can buy the Ford Focus. This is the slice that Apple needs to worry about.

Maybe Apple should introduce another iPad, just like Mercedes introduced the C class?
 
The problem is: What kind of tablet can you build and sell for $199 and make a profit, and what kind of tablet can you build and sell for $499 and make a profit. There is a huge difference in hardware between iPad and this "Kindle Fire", but the PlayBook, like the TouchPad, have hardware that is quite similar to the iPad. You can't build a PlayBook and sell it for $199 and not make a huge loss. At $199, Apple could bankrupt RIM by buying all the PlayBooks until RIM runs out of money :D

The Kindle Fire hardware is a lot cheaper to build. And Amazon can sell it with very little profit as long as customers buy eBooks from Amazon, something that RIM cannot do.




For movies, 3G is irrelevant. For most people, the cost of playing a 1 GB movie over 3G is extortionate.

Amazon is not expecting to make a profit on the hardware. Unlike RIM they have a huge ecosystem of content that already makes huge profits. They can afford to see at $199, emphasizing how different their business model is from Apple's.

Not a deal breaker for me.
You can simply download one or use browser based email.

It has an e-mail client.
 
Amazon Kindle Fire have done several things that will change the industry forever. Hence, it should be considered a landmark launch.

Expected Changes

1. Huge fall in all Android tablet prices.

2. Further squeezing the bottom-lines of a number of companies, resulting in lesser margins and weaker players exiting market.

3. Ending the e-ink versus LED debate. Apple won.

4. The end of iBookstore.

5. Google purchase of Motorola Mobility could spell trouble.

However, as highlighted by a number of users, the machine is subsided by future content purchase. In another words, the profit margin could be negative. If the content sales are hit by pirated activities like jailbreak and virus intrusion which is super-easy for Android devices, this could spell the end for moving onto Android devices.

Kindle is also taking a huge bet on the cloud services. However, with a 8gb and wifi, and not 3G, a universal access to cloud could be problematic and slow. This could add on to problems.

Finally, what Apple taught us is that cutting prices is not the answer to being cool on the block.

I don't think that Amazon is actually selling the Fire at a loss. They could be making very small profits before any content is bought, yes, but not a loss.
 
Amazon's Android app store is far more open of a platform than Apple's app store.

Apple paid more than 2.5 billion dollars to developers. Amazon has got plenty of complaints for ripping off Android developers. And money is what counts.
 
Thing is, there IS a thriving ecosystem within Amazon.

If you're a frequent online purchaser, Amazon is the go-to place to buy most products as their pricing is almost always competitive.

To the folks that say Amazon doesn't have its own ecosystem, are extremely ignorant.

Completely agree, and I enjoy Amazon's as well. I'm just not so tied to one that I couldn't easily jump to the other. I do, however, appreciate the operability of Amazon's with devices that don't necessarily start with "i".
 
If I am not mistaken, this is what Apple has been trying to pull off for years.
Who cares where it's rendered, the content came from somewhere to begin with.

With iPad (unless you pay for 3G), the same holds true for internet obviously. You'll see a 3G fire next year for sure. Lastly, did you notice that it's UNLIMITED storage w/amazon for FREE?

Said it earlier, iCloud better hit it out of the park on opening day.



Exactly, no need to have 32 gb, did you see that silk? WTF.
Attention all NC datacenter employees... company meeting, now.

I have a 64GB iPad which I store movies, apps and books on. When I am on a plane I don't have access to Wi-Fi so I am glad I have the extra space. I have about 20GB of movies on my iPad which the kids use to watch movies on when we are on the road. Besides why should I be forced to rely on a Wi-Fi connection for my content and app needs. Yes I know the Fire has 8GB but that can be used up very quickly.
 
Expected Changes

3. Ending the e-ink versus LED debate. Apple won.

Kindle is also taking a huge bet on the cloud services. However, with a 8gb and wifi, and not 3G, a universal access to cloud could be problematic and slow. This could add on to problems.

Finally, what Apple taught us is that cutting prices is not the answer to being cool on the block.

Couple issues here...
No. e-ink wins for reading, hands down. I have both an iPad and Kindle, and never bother with iBooks. Kindle is lighter, better battery, but most of all, far more readable. Can't stand the notion of a bright screen reading in bed, or a non-readable screen sitting in a chair outside.

The Fire looks to be more of a media centric device.


As others mention, 3G is likely to come soon.
 
Amazon Kindle Fire demo
http://www.youtube.com/watch?v=3-oUrzy0Lvw


^^ You can see a lag at 3:20 mark but that interface is actually much CLEANER than I expected from Amazon or from any Android tablet. Meaning it doesn't look like a jumbled mess like what you see in Honeycomb. Everything is organized very well.

$199. Can't beat that price for its value and this is a first gen. It does get better and it does get cheaper over time. Now I see the Kindle for $79 which means I can't sell my Mom's Kindle 3 for $100 anymore even with the accessories. So if the Kindle Fire is $199 now, wait another year. This same model could cost like $129 by next year while another one with dual-core or whatever will take over the $199 price point.

This is why I always liked Amazon. They always play FAIR with the prices which is why they are the #1 online store with the most satisfied online shoppers.
 
Oh and owning an Ipad is free after the original purchase.
Come on mate....show a little bit of objectivity!


I am. I understand I buy stuff from the App Store. Those are useful apps. And sometimes I purchase a movie but rarely watch it on my iPad. I do not pay Apple $79 a year to stream movies. If Apple offered that I would still not pay it.

I do understand the Fire will be a candy store for some. But not most people.
 
Amazon Kindle Fire have done several things that will change the industry forever. Hence, it should be considered a landmark launch.

Expected Changes

1. Huge fall in all Android tablet prices.

2. Further squeezing the bottom-lines of a number of companies, resulting in lesser margins and weaker players exiting market.

3. Ending the e-ink versus LED debate. Apple won.

4. The end of iBookstore.

5. Google purchase of Motorola Mobility could spell trouble.

However, as highlighted by a number of users, the machine is subsided by future content purchase. In another words, the profit margin could be negative. If the content sales are hit by pirated activities like jailbreak and virus intrusion which is super-easy for Android devices, this could spell the end for moving onto Android devices.

Kindle is also taking a huge bet on the cloud services. However, with a 8gb and wifi, and not 3G, a universal access to cloud could be problematic and slow. This could add on to problems.

Finally, what Apple taught us is that cutting prices is not the answer to being cool on the block.
Agreed on all but #3. Did you see the other new Kindles announced today? There are 3 (yes 3) new e-ink Kindles plus the existing 2 models. E-ink still has its place and will for some time to come.
 
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