Okay, so this new Kindle seems pretty awesome. Not iPad awesome, but definitely good enough to cut into Apple's market share. I'm not sure if Jeff Bezos and company are ready to take on Goliath- they may only be trying to create a new genre, as the iPad did when it was released. Well, here are three reasons why Amazon will do some serious damage in the tablet market and three reasons why they won't.
Why It Will Do Well:
1- Price
The first thing I noticed about the Kindle was its svelte price- $199 for a tablet is unheard of, and although companies haven't started to seriously undercut each other to cut into Apple's market share, Amazon may put some tablet makers out of the game with this price point. Plus, it helps that if your kid spills juice on it, or you leave it on the counter somewhere, you're only out of $200, not $500 minimum.
2- Familiarity
Millions of people already own Amazon Kindles and are happy with them, so for Amazon users, this is a natural step up. Sure, they can activate a kindle app on other devices, but more than likely, if they're happy with the Kindle, my guess is that they'll stick with the Kindle Fire. The device is still small and thin, so they get to keep the form factor, even with the overhaul
3- Doesn't Do Much
Some people just like simple. My mom wouldn't be able to use an iPad because she wouldn't understand how to work half the apps and gestures on it. She would need something simple to read books, check the internet, and keep up with her email. The Kindle Fire is perfect for her.
Why It Won't Do Well:
1- iPad Has Familiarity, Too
Amazon's Kindle is cool, but the iPad is getting to a point where the name is becoming a general term for all products like it- take Kleenex, Q Tips, or yes, even the iPod as examples. The iPad has just about become the end-all be-all in tablets.
2- Not Very Many Apps
For some, the Kindle Fire not being able to do much is a good thing. For most, however, it is a bad thing. People want to buy a tablet and download a bunch of apps for it. If Amazon can't support a large app library, they may not thrive.
3- No 3G Option
I thought this would be an obvious addition to the Kindle Fire, but apparently I'm wrong. With a device this compact, 3G would be an obvious shoe in as I see it.
At this point, I don't even think the Fire is competing with the iPad- the only area where it seriously competes is price, and even still, it offers an entirely different set of attributes. I'll be interested to see what comes of this.
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