We're getting nowhere with trying to figure out what to label the Fire.
How about this:
There are two levels of smartphone (I know you can argue there are more, but let's try to keep this simple, ffs). There are high-end and low-end. You don't pay a small price and expect all the features of a high-end smartphone, just as you won't pay a large price for a Kindle Fire, so you shouldn't expect a full-featured tablet.
It's a "low-end" tablet. It's great for what you pay for it, but you should not expect to be able to have the functionality or the large variety of apps that you get with an iPad.
Is that a fair comparison?
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I agree with you. A $300 difference in price is huge, especially considering how robust the Fire will be at that pricepoint. I just don't seeing it putting such a huge dent in the iPad that it'll be anything appreciable.
I have no doubt that the Fire will sell multi-millions though. The iPad will just sell multi-millions more LOL. That doesn't make the Fire a bad product in anyway.
The problem seems to be that Amazonians take offense to anything they perceive to be a slight against the Kindle Fire, even if you're simply stating the facts about what the thing can and can't do.
It's not an iPad, nor is it meant to be. If it were, it would be larger, made of glass and metal, include a camera, Bluetooth, give you an option to buy a 3G model, would have an accelerometer, would have a gyroscope, would have multi-touch that recognized more than two fingers, would have GPS capabilities, and would connect to the Android Marketplace so you could take advantage of a number of apps comparable to that of an iPad.
The Kindle Fire looks to be a great "tablet lite" but it's not a full-featured tablet. It's just not. It's perfect for what it does, but people need to stop trying to line it up with something that does what it can't.
To refer to it as a full-on tablet or an "iPad killer" is going to serve to confuse the uninformed and piss off the masses. If many people purchase one of these thinking it truly is as full-featured as an iPad, there will be a lot of complaining, a lot of negative reviews, and a lot of returns. None of this is good for Amazon and the future of the Kindle Fire.