Kindle Fire Seen Slowing Some Previously-Planned iPad Purchases

[BJ.SoundWave360]

hmmm

The Fire is basically just a storefront for Amazon. Not necessarily a horrible thing, but totally different from what the iPad is. The iPad, for many many people, could be their primary computer. I guess a Fire could be too, if a browser is all you needed, but it's FAR less useful on that level.

 

[Liquorpuki]

If you really think the basis for the Fire is eBooks you are completely clueless and missing the point.

Your reading comprehension sucks. I said the only leverage Amazon has on Apple is eBooks and they gave that away by cross-platforming

Now the only thing they have on Apple is price, which is not gonna do anything but move it into a submarket

Enjoy your budget tablet with a crappier app store, crappier cloud tech, etc.

 

[samcraig]

The Fire is basically just a storefront for Amazon. Not necessarily a horrible thing, but totally different from what the iPad is. The iPad, for many many people, could be their primary computer. I guess a Fire could be too, if a browser is all you needed, but it's FAR less useful on that level.

The iPad is pretty much a storefront for iTunes.

Both devices would be fine for most people who just surf and do email (plus want to consume content)

For content creation - the iPad has an upperhand (not HUGE) - but definitely an upper hand.

----------

Your reading comprehension sucks. I said the only leverage Amazon has on Apple is eBooks and they gave that away by cross-platforming

Now the only thing they have on Apple is price, which is not gonna do anything but move it into a niche submarket

Enjoy your budget tablet with a crappier app store, crappier cloud tech, etc.

LOL - crappier cloud tech. Please explain. Please compare/contrast iCloud and Amazon's cloud services. Enlighten us!

 

[asphalt-proof]

Eventually Apple is going to be in for a shock.

Just like Flat screen TV's
Video recorders
DVD players
Laptops
Laser printers
Monitors

There will come a point in the future when the technology has matured to the point where tablets will just become commodity items. The tech will be settled enough, and so many factories around the world are churning out so many millions of tablets per month that costs will tumble.

When this happens, and will probably be quite a few years from now, perhaps a decade? It's going to be hard to justify your $600, $800 tablet unless it does something so amazing that nothing else can do.

Very few people in the mass market buy the top end hi-fi's and such like any more as the quality of the low priced models are enough for 95% of the population.

It's going to be interesting to see if Apple can only produce a "Premium" product when we get to this stage, as they might get swamped by then.

I'm betting that tablets are going to become commodities a whole lot sooner than a decade. Really, the iPad is an expensive commodity as it stands. Component prices are only going to go down and now that are are a whole lot of factories set up to make tabs, the start-up costs are going to recede. I would bet that in a year to a year and a half we will see low end tabs under a $100 and middle of the road at around $150-200. Apple will be forced to compete then. Just like the iPod eventually had many different models with various price points, i'm betting the same will happen to the iPad.

Amazon really has changed the game. It has as complete(except apps) eco-system as apple. Is it as clean and easy to use? Don't know. But it's the ONLY viable competitor to Apple as it stands.

 

[bretm]

I think the Fire only has 8GB of storage, so playing movies on the go in the car may not be a viable solution unless you have unlimited 3G/4G access for it via a WiFi hotspot.

You could definitely get a couple of movies on there, but you want to leave room for other stuff, so jus remember to pin a couple of movies while you are at home before you leave (assuming you can do that with the Amazon streaming video service -- I have not used it).

You're absolutely right. I thought it was giving some 3G access to Amazon Prime members. They should at least include it and negotiate some deal with GSM carriers so they can resell 3G, but then they've just turned into a pseudo phone company that doesn't sell a phone connection. Then people will want apps to make phone calls, etc. to run. So kinda messy unlike the 3G provided on other devices which are so low bandwidth I'm sure they just pay a nominal fee for the data. But downloading moves over 3G for $79 a year via prime? Not gonna happen. They'll have to add 3G and then Prime PLUS or something.

So I guess it's relegated to a couch/hotspot device. Kinda seems silly that it should be so small if portability isn't it's strong point.

 

[slinky199]

Not necessarily. If some consumers buy the Fire instead of the iPad with full knowledge of the differences between the two then the Fire is just filling a void that existed in the marketplace. That isn't the same as direct head-to-head competition. The Fire buyers, assuming they understand the difference between the Fire and iPad, are buying the Fire because the iPad is more tablet than they need. It's the same way some people buy a BMW 1 series instead of a 3 or a low end MacBook Pro instead of the top of the line.

Nope.

Econ 101. Substitute good. You do not understand it.

 

[Eidorian]

Then why bother with an iPad?

Screen size?

Marketing and peer pressure rank at the top for my reasons behind buying a tablet.

I fawned over a Transformer Prime for about 5 minutes last night until I realized I have no use for one and it would deplete half of my personal computer budget. Those were a fun 5 minutes though.

Now it is time for Haswell's 5 minutes.

 

[jav6454]

Marketing and peer pressure rank at the top for my reasons behind buying a tablet.

I fawned over a Transformer Prime for about 5 minutes last night until I realized I have no use for one and it would deplete half of my personal computer budget. Those were a fun 5 minutes though.

Now it is time for Haswell's 5 minutes.

XY Bridge is not even out completely in the high end and we are moving to Haswell? What is Intel smoking?

 

[AppleScruff1]

Your reading comprehension sucks. I said the only leverage Amazon has on Apple is eBooks and they gave that away by cross-platforming

Now the only thing they have on Apple is price, which is not gonna do anything but move it into a submarket

Enjoy your budget tablet with a crappier app store, crappier cloud tech, etc.

Sour grapes? Do you fear the Fire that much?

 

[Eidorian]

XY Bridge is not even out completely in the high end and we are moving to Haswell? What is Intel smoking?

Intel is going full throttle with the LGA 1xxx/desktop/mobile midrange processors. You can supply 2 complete platforms and kick Xeon to the curb with two similarly based dies.

 

[bretm]

I'm betting that tablets are going to become commodities a whole lot sooner than a decade. Really, the iPad is an expensive commodity as it stands. Component prices are only going to go down and now that are are a whole lot of factories set up to make tabs, the start-up costs are going to recede. I would bet that in a year to a year and a half we will see low end tabs under a $100 and middle of the road at around $150-200. Apple will be forced to compete then. Just like the iPod eventually had many different models with various price points, i'm betting the same will happen to the iPad.

Amazon really has changed the game. It has as complete(except apps) eco-system as apple. Is it as clean and easy to use? Don't know. But it's the ONLY viable competitor to Apple as it stands.

The whole $100 laptop concept that non-profit companies were working on with govt.'s and such (which never really amounted in much) is quickly being trumped by capitalism. Go capitalism! Making stuff cheap and widespread for a profit vs. crappy and useless and costing taxpayers!

Ok, no specific facts to back it up, but you get the gist. Govt is bigger and more inefficient than any corporation and doesn't make money or increase the wealth of any nation. The only money it has it has taken. The only money it spends has been taken from someone who earned it. They are not driven by profits, only by reelection. /pointless trollish rant

 

[Chupa Chupa]

Nope.

Econ 101. Substitute good. You do not understand it.

Right I don't get it. You clearly missed the day your prof delineated between indirect and direct competition. The Fire is NOT direct competition. Sorry. If some substitute it's indirect because a substitute is not what the consumer really wants, it's 2nd best because the first choice is either not available or too expensive. If it's too expensive then the Fire is filling a niche the iPad does not compete in.

 

[jamesnajera]

Here's the thing, did they ever ask the question "How many people are waiting for the iPad 3?".

 

[samcraig]

Here's the thing, did they ever ask the question "How many people are waiting for the iPad 3?".

I'm guessing not - just like they didn't ask the irrelevant question, "Or are you waiting for the Kindle Fire 2?"

 

[alent1234]

I'm betting that tablets are going to become commodities a whole lot sooner than a decade. Really, the iPad is an expensive commodity as it stands. Component prices are only going to go down and now that are are a whole lot of factories set up to make tabs, the start-up costs are going to recede. I would bet that in a year to a year and a half we will see low end tabs under a $100 and middle of the road at around $150-200. Apple will be forced to compete then. Just like the iPod eventually had many different models with various price points, i'm betting the same will happen to the iPad.

Amazon really has changed the game. It has as complete(except apps) eco-system as apple. Is it as clean and easy to use? Don't know. But it's the ONLY viable competitor to Apple as it stands.

apple will just keep older products around longer. just like the 3GS still being "sold". apple did it with the Nano and ipod shuffle as well after the ipod had been out for a few years.

another few years and apple will have most of the mobile market, a good part of the home market and Microsoft will be left with their corporate market. unless something disruptive comes out and kills off apple again, but i don't see it.

 

[*LTD*]

No one who buys a Fire was ever a potential iPad customer. If you don't start acknowledging that and pointing it out in the articles that highlight the Fire, then you might as well stop posting about it all together.

Just wait until the quarterly report (and even better to wait until the one after this one.)

Quarterly reports always clear things up. Always. That is really the only time the rubber hits the road: Numbers, units sold, profit share.

Show me numbers when the dust clears. Then we'll see who is and isn't buying what.

 

[milo]

$199 kindle fire vs $199 ipod touch. unless people need to buy apple, the Fire is the better choice here

While the fire has some advantages, the touch has the cameras and a much better selection of apps.

if all you want to read is books on the way to work plus some light movie watching and other media consumption you can't go wrong with a kindle. and the kindle selection is awesome

For anyone primarily interested in books I'd argue the original black and white models are a better option. And book selection is the same on any device since there are kindle apps. Again, if I wasn't going to go iPad I'd still probably pick the touch over the Fire (and that's assuming someone without a smartphone who would probably just use that if they have it).

Screen size?

And for someone who values screen size, isn't the iPad a better choice?

Notice how the fanboys completely disregard Amazon's cloud service.

This takes care of the local storage on the Fire.

So it's dependent on cloud service but doesn't have 3G? Sounds like a great strategy.

 

[neonmd]

26% of 5%?

So just to clarify 5% responded they had pre-ordered or would order a Fire. of those people 26% say they have put on hold or will not now buy an iPad.
So 5/100 people have bought or will buy a Fire and of those 5, 1-2 people will now not buy an iPad.
So 3-4 people left open that they may buy both and 95/100 people have no intention of buying a Fire.
Out of the total n(2,600) of the population 130 say they will buy a Fire and 33-34 of those will not buy an iPad.

 

[damir00]

If some substitute it's indirect because a substitute is not what the consumer really wants, it's 2nd best because the first choice is either not available or too expensive.

You are flat out wrong on this. The Fire is *direct* competition, and we're buying ("substituting") them because we *want* them, not because we can't afford our first choice.

It won't replace our existing iPads - still love 'em and we will keep using them - but it is most definitely affecting our future iPad purchases.

 

[TWSS37]

of course the kindle fire would cannibalize some of the ipad's sales. who didn't predict that?

Everyone on this site.

 

[milo]

far more e-books, TV shows, and movies available than Apple.

E-books is the same since there is a kindle app for iOS (and even for the mac). What's your source on more TV shows and movies available?

 

[Rafterman]

I don't see why the media keeps comparing the Fire to the iPad. They're very different items that do different things. I own an iPad and I'm going to purchase a Fire because they are different.

I agree. I have an iPhone and an iPad (as well as an older model Kindle) and while all can read Amazon books, the iPhone is too small and the iPad too heavy (I don't mind the screen size, but its just too heavy to read ebooks for any length of time). But the Kindle has the right scree nsize and is light. Perfect for around-the-house reading. And with the Fire, the problem of reading in the dark is made easier (without having to add a bulky light or case/light as in the case of e-ink Kindles).

 

[Judas1]

You can test that out on your iPad. Let us assume that the Fire surfs as well as the iPad for sake of the test. Not likely but let us assume that.

Ok, First turn your iPad so you are in Portrait mode.

Next cover half the screen with paper using some scotch tape.

Wha La. You have a Kindle Fire. Enjoy your surfing.

The fire and the ipad2 have very similar resolutions, the fire is 1024x600 while the ipad2 is 1024x7XX. The extra pixel of the ipad2 is only there because the ipad2 has a wider aspect ratio. So you will have a similar web surfing experience.

 

[Liquorpuki]

LOL - crappier cloud tech. Please explain. Please compare/contrast iCloud and Amazon's cloud services. Enlighten us!

Yeah, let me know when Amazon figures out how to do something with the Cloud besides treat it like a hard drive

Sour grapes? Do you fear the Fire that much?

I don't work for Apple so I don't care. Actually I'd love for a company to put out a tablet that would challenge the iPad for significant marketshare instead of failing or becoming a niche device. The Fire isn't it

 

[firewood]

The iPad is pretty much a storefront for iTunes.

Not if you look at Apple's revenue or P&L breakdowns. All iTunes is a tiny percentage. iPad hardware is huge.