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Amazon Set to Unveil $199 'Kindle Fire' Tablet
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this is competing with the ipad over a percentage of customers only.
The ipad is great, its essentially a computer. But it is expensive. I, for example, don't want one. Although I have many Apple products, the role the ipad has is mostly filled by my phone (mobile email and web) or my laptop (production). The ipad, for me, would essentially be a large device just for watching movies and reading books. Thats why I bought a kindle (which I then lost...). The ipad is for people who need a basic computer, or mobile productivity, or want to take it "all" on trips (calendar, contacts, music , movies, webcam)...but don't want a laptop.
The Fire is aimed at all the people like me. Who kind of want a ipad, but not really...it does things I dont need it to do, for more money. Or for people who just want something for movies and books, not games.
The real trick is this...can the Fire download movies/TV shows to take on trips? Or is it Wi-fi only? If its wi-fi only that ok, it will still do ok. If it can hold 3 or 4 movies, including ones you have ripped....then the Fire might be a really big deal.
At any rate, I am glad Amazon is putting in the legwork to make tablets that are in the same class as the ipad (in terms of value) and not just some overprice POS also-ran. I am very interested in seeing Amazon Silk live. I mean, thats a good idea, and it takes balls. Balls, and ideas, other companies apparently don't have.
Edit:Apparently you can download movies and books, and it has 8gb internal storage, per Engadget video of Kindle Fire. Sweet.
The ipad is great, its essentially a computer. But it is expensive. I, for example, don't want one. Although I have many Apple products, the role the ipad has is mostly filled by my phone (mobile email and web) or my laptop (production). The ipad, for me, would essentially be a large device just for watching movies and reading books. Thats why I bought a kindle (which I then lost...). The ipad is for people who need a basic computer, or mobile productivity, or want to take it "all" on trips (calendar, contacts, music , movies, webcam)...but don't want a laptop.
The Fire is aimed at all the people like me. Who kind of want a ipad, but not really...it does things I dont need it to do, for more money. Or for people who just want something for movies and books, not games.
The real trick is this...can the Fire download movies/TV shows to take on trips? Or is it Wi-fi only? If its wi-fi only that ok, it will still do ok. If it can hold 3 or 4 movies, including ones you have ripped....then the Fire might be a really big deal.
At any rate, I am glad Amazon is putting in the legwork to make tablets that are in the same class as the ipad (in terms of value) and not just some overprice POS also-ran. I am very interested in seeing Amazon Silk live. I mean, thats a good idea, and it takes balls. Balls, and ideas, other companies apparently don't have.
Edit:Apparently you can download movies and books, and it has 8gb internal storage, per Engadget video of Kindle Fire. Sweet.
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Seems like they're offering them at a loss and will make it up with volume. Guess thats one way to get to scale but really not a good long term solution.
Tell that to Gilette, or any other actor utilizing skewed pricing schemes on multi-sided markets. Its only like one of the most tested business models for platform-businesses and the like, so yeah... i guess they are all wrong, huh?
I don't know, it sure hasn't worked out in the PC business as you watch all of the PC manufacturers lowering profits and exiting the segment.
I don't really understand the idea of getting it into more hands because Amazon can't make up for it on volume if they are selling it below cost (apparently $50 is the guess) because I cannot imagine they are making any real money from selling content.
If Amazon can get these tablets in stores before Thanksgiving and give it a bundle deal the day after we have our turkey dinner, it is going to be one helluva, crazy Black Friday. Then Amazon throws in a few incentives for us on Cyber Monday ONLY and at a certain time.
2011 gadgets for under $200 -
Amazon Kindles in multiple variations ($79-$199)
Nintendo 3DS
iPod nano (7th gen)
Whatever gadget that can be discounted on Black Friday/Cyber Monday
I can say smartphones like iPhone 5, but that deals with subsidized pricing and 2-year commitments. Not exactly the perfect gifts. Most video home consoles are 5 or 6-year old now and saturated the demographic. The Vita is out in Japan.
It is RIPE for Amazon to sell their e-book readers for $149 or less and a tablet for $199 this Holiday season. Again, no much experience selling their own hardware compared to others but they do a good job selling their own with reasonable pricing. The fact Barnes & Nobles took a hit in the stock market means Amazon will look to stomp on the Nook Color in pricing and features.
You can almost see the evolution of Kindle similar to Apple iPods. From non-color to color screens and branching out in different models. Within a few years, Amazon will have their lowest-end e-Book readers being sold for under $39 and Amazon will be one of the first to introduce a decent tablet while coming from a reputable vendor for $99.
2011 gadgets for under $200 -
Amazon Kindles in multiple variations ($79-$199)
Nintendo 3DS
iPod nano (7th gen)
Whatever gadget that can be discounted on Black Friday/Cyber Monday
I can say smartphones like iPhone 5, but that deals with subsidized pricing and 2-year commitments. Not exactly the perfect gifts. Most video home consoles are 5 or 6-year old now and saturated the demographic. The Vita is out in Japan.
It is RIPE for Amazon to sell their e-book readers for $149 or less and a tablet for $199 this Holiday season. Again, no much experience selling their own hardware compared to others but they do a good job selling their own with reasonable pricing. The fact Barnes & Nobles took a hit in the stock market means Amazon will look to stomp on the Nook Color in pricing and features.
You can almost see the evolution of Kindle similar to Apple iPods. From non-color to color screens and branching out in different models. Within a few years, Amazon will have their lowest-end e-Book readers being sold for under $39 and Amazon will be one of the first to introduce a decent tablet while coming from a reputable vendor for $99.
Uhm, actually it has... for MSFT. Also, which of these pc manufacturers are tapping multi-sided markets?
a) content
b) ads / data
c) services
that is how they will make money. that is what they have to compete with. i think they will do fine. there are only a select few of actors who can take them on, assuming they break this in time.
Uh, what? Amazon isn't licensing an OS to a bunch of hardware makers. They're doing the hardware (and taking a loss) and the software. PC manufacturers had slim margins (but actual margins!) and have now realized that selling a bunch of stuff for really cheap is not nearly as good as selling less for more money.
Maybe we're just talking about different things, but I was referring to the quote from that guy who was talking about making it up in volume and the fact that it isn't a good long term strategy.
EDIT: You added more after I replied:
Content has almost zero margins for everyone else so I doubt Amazon is making any money here, especially when they give away a lot of content.
Ads/Data is an interesting concept, but I'm not sure how much they can serve up in the way of ads without getting more dedicated to it.
Services: I'm not really sure here because I am not too familiar with Amazon's services that would be tied to the tablet. Generally most services that exist are fairly cheap and add to the user experience, rather then generate a lot of profit. However, I honestly am not familiar with what they'd be doing here.
I think the Kindle Fire is aimed at someone like me: a consumer on a tight, tight budget. It's not based around a lot of the folks here: the ones with so much disposable income that they can toss out a $300 iPhone a year later for a brand new $300 iPhone that really isn't much better than what they had -- it's just new and shiny.
I don't have a lot of disposable income, so even a $500 iPad is out of the question. Yeah, I could keep saving, but I just can't justify spending that kind of money on a toy. Sure, iPad has all these great uses, but I really don't need one.
Also, it needs to last, and not until the next update. It needs to last about 5 or 6 years. I splurged on a $1,200 iMac in 2008, and I need it to last until 2014. (Thus, why I'd never buy Windows or a PC. They just don't last.)
But $200 for a device that essentially performs the same tasks? That's less of a dent on my finances. I still don't need it, but I can part with $200 and not feel guilty about it.
(Although, I still likely won't get the Kindle Fire. I received a Kindle 2 for Christmas a few years ago, and I can only budget myself $10 a month for a lousy book. But, it's better than nothing, and the Kindle 2 works as good as the day I unwrapped it. I see no reason to upgrade.)
I don't have a lot of disposable income, so even a $500 iPad is out of the question. Yeah, I could keep saving, but I just can't justify spending that kind of money on a toy. Sure, iPad has all these great uses, but I really don't need one.
Also, it needs to last, and not until the next update. It needs to last about 5 or 6 years. I splurged on a $1,200 iMac in 2008, and I need it to last until 2014. (Thus, why I'd never buy Windows or a PC. They just don't last.)
But $200 for a device that essentially performs the same tasks? That's less of a dent on my finances. I still don't need it, but I can part with $200 and not feel guilty about it.
(Although, I still likely won't get the Kindle Fire. I received a Kindle 2 for Christmas a few years ago, and I can only budget myself $10 a month for a lousy book. But, it's better than nothing, and the Kindle 2 works as good as the day I unwrapped it. I see no reason to upgrade.)
First, see above. I clicked post prematurely.
Second, say what? Where did i say that Amazon would be doing that?
Third, so was i. And, like stated, it is a good strategy, in fact one of the best ones out there - as evidenced by the market itself.
Why is it too late? Do you think Apple will have a tablet that is a worthy notebook replacement before that? Will the iPad 3 bring Intel i series power to market along with a more robust iOS with a file system, etc? It is possible, or maybe Apple has something else in mind. I really wonder.
As long as they get it out 2012 im happy. How else is Gates 2012-prediction gonna come true
(Obviously, Amazon will help...)
I am confused on what you are even talking about; maybe we are talking about different things? I am very clearly talking about the quote by the guy who said that it is not a good long term strategy to take a hit on the device and try to make it up in volume.
PC manufacturers tried to do large volume with little margins and it is crippling them and causing some of them to consider exiting the entire market (HP).
I don't really know of many successful technology segments that operate this way outside of the gaming section, which have large profit margins in the games themselves to make up for the initial hit on the console hardware.
As long as they get it out 2012 im happy. How else is Gates 2012-prediction gonna come true
What was Gates 2012 prediction?
The Kindle can now download books from public libraries just like the Nook. My wife has a Nook touch and she reads library books ALL the time.
I have an iPad now, and before that a Kindle. The KFire looks very interesting to me but I'll likely sit this one out. My iPad 1 still works and I don't have a lot of money to throw around. Also, I'd like to see what the KFire 2 and the iPad 3 will look like before I buy another device. The size of the KFire is very attractive to me. While I like my iPad, I do find it gets a little heavy sometimes. I think Amazon is going to do well with these. Will it run Apple out of the iPad business, very doubtful. I think variety and competition is a good thing all around.
If I were an investor, I'd prefer Company A. You know the one that rakes in the cash in RECORD amounts? Company B is apparently a charitable organization, not a business. This is about pure profit, rake in the cash, take no prisoners!
But for the consumer , company B is respectable and more likely to get more Fans and customers to follow them.
More people buying = better for the company.
Plus company B won't rape the consumers of 500+ dollars when it takes a fraction of that amount to make the devices.
Amazon will sell this device on a profit, Increase there customers, Increase their exposure, increase the amount of people buying their media (books, movie, music, products) and this in tern will be good the the investor.
I am definitely going to be buying a kindle fire, why the hell not? It is an android device, thus i will have access to thousands of apps, It has a simple UI (which is why many people love the iPad), It seems like a pretty nice device, and the device is "in the cloud", wireless syncing.
Oh and did i mention the price!!!
Anyone from Australia here? Trying to get the basic Kindle delivered here, it costs $109 + $30 shipping = $139...
Can't believe it's sold for $79 free shipping in US! Especially when $ 1 USD = $1 AUD!
Can't believe it's sold for $79 free shipping in US! Especially when $ 1 USD = $1 AUD!
Amazon is making plenty money on content, and more will come. Will it (continue to) be a high-volume low-margin business? In itself, definitely... which brings us to services. Services are wonderful things, especially for businesses. It adds another dimension of differentiation, and thus allows businesses to break out of the downward spiral that is margin-pressure and commodization.
Finally, ads/data - which really has nothing to do with the above (which are interlinked). Amazon already has tons of data. Amazon is the company that first (at least successfully) capitalized on using said data to drive consumption (recommendations). With more data incoming, Amazon will do even better. This means two things: a) companies will want to tap in to this. b) even if they didnt (but trust me, they do), they still drive their own sales.
...and yeah, something i forgot, by strengthening their position in the space in which they operate, they are increasing barriers for new entrants while differentiating from competitors in a hard-to-replicate way. This increases the power which they can exert on their suppliers, in turn allowing them to operate higher margins. In a low margin high volume business, just adding cents makes a huge difference.
Textbook... i'm actually quite impressed by Amazon here. Even if its textbook most fail anyway, this actually has a real chance of being a success.
Exactly, and you never know, Maybe this device will be a MASSIVE hit and change the whole tablet industry together.
But it depends on what consumers want, Do i want a camera in my tablet? No not really, I never use the webcam.
Do i want 3g access? deffo not, I already pay more bills than i want.
Gps? I'm never going to walk around with my tablet in my hand anyone.
All I want is a device to surface the web on the couch, play on a few apps, Listen to music and stream some videos. This device is so simple it's perfect for me.
Do you have any proof of this or did you just completely make this up? I'm guessing the latter here.
How will Amazon make it up if they're losing money on each one and then the services and content that they sell makes them barely any money?
Alas, my public library has not caught up with the times. No e-book lending for me.