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Print 21 comment(s) - last by paoloberno.. on Oct 6 at 10:57 AM

Looks like Amazon.com's bargain pricing approach is paying off, early on

Is Amazon.com, Inc. (AMZN) new Kindle Fire Android tablet an "iPad killer"?  According to a leak, preorders reveal it could be, thanks to its budget price.

When it comes to the tablet market, the aspiration of every Android tablet maker is to create the "iPad killer".  Apple, Inc.'s (AAPL) popular tablet still controls 63 percent of global sales.  Thus far many companies have had their designs touted as "iPad killers", but only Samsung Electronics Comp., Ltd. (SEO 005930) has managed to come close to rivalling Apple in sales.  And Samsung's prospects of continuing to do so are in jeopardy thanks to a slew of lawsuits [1][2][3][4] [5][6][7] brought by Apple.

Amid this backdrop of high expectations and unfufilled hype Amazon.com, Inc. (AMZN) revealed last week its first entrant in the color multi-touch tablet market, the Kindle Fire.  It didn't take long after the unveil for the skepticism to set in.  Some pointed out that Barnes & Noble Inc. (BKS) had released a similar tablet (the Nook Color) almost a year ago.  And reports indicated that the Fire might be sold at a per-unit loss.  Boy Genius Report Editor-in-chief Jonathan Geller suggested during an appearance on CNBC on Wednesday afternoon, Amazon's new tablet "might not even really be an iPad competitor at all."  

And Ticonderoga Securities analyst Brian White summed up these sentiments, remarking that the device was "hardly an iPad killer", stating "We believe Apple’s long history as both a hardware and software company will continue to drive greater technological innovation in the tablet market versus Amazon. Also, the aesthetics of the Kindle Fire seem tired to us and clearly pale in comparison with the iPad 2."

If the aesthetics of the Kindle Fire pale in comparison to the attractive iPad, the iPad's price equally pales in comparison to the Kindle Fire's.  The Kindle Fire starts at $199 USD -- an unheard of price point for a modern tablet.  The iPad starts at $499 USD -- an extra $300 USD.

A leak published by CultofAndroid (the sister site to CultOfMac) indicates that the Kindle Fire has racked up 254,000+ preorders, just five days after the unveil.  The leak, which comes from Amazon’s availability look-up and SKU aggregator (ALASKA), is an early signal that Amazon.com's budget pricing strategy may be paying off.

Kindle Fire presales

Apple's iPad only mustered 300,000 sales on its first day, when it was released last year.  Amazon.com has been sustaining an apparent preorder pace of 50,000 orders a day, or roughly 2,000+ orders an hour.  If it can keep this up it could easily pass the iPad in first day sales when it debuts on November 14.

To give just one more benchmark of how impressive this figure is, the Motorola Xoom reportedly only sold between 25,000 and 125,000 units in its first two months on the market.  Amazon.com may have just doubled that with a month of preorders still left in store.

Sources: Cult of Android, Boy Genius Report



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Obviously it will beat iPad sales
By quiksilvr on 10/5/2011 9:30:14 AM , Rating: 5
Its frigging $300 less. Even the mindless iSheep will concede that a $199 tablet people would cause people to smash the door with flying sledgehammers.




RE: Obviously it will beat iPad sales
By Brandon Hill (blog) on 10/5/2011 9:33:56 AM , Rating: 5
I'm suddenly have flashbacks to Super Mario Brothers


RE: Obviously it will beat iPad sales
By Kurz on 10/5/2011 10:22:05 AM , Rating: 4
Post Tramatic SMB Disorder, please seek help from your local pastor/psychologist. ;)


By lolmuly on 10/5/2011 10:21:54 PM , Rating: 2
Your shopping gorge can only be slowed by one thing, boxes. So everyone in our megamart 12 minute frenzy will get a free box cutter at the door!

FREE BOX CUTTERS!

and to keep the energy up we've hired DJ Thunderthrust, one of the top Death metal DJ's in the tri-state area! He'll be playing music so LOUD...

NO ONE CAN HEAR YOU SCREAM!

Finally we're proud to have 93 year old actor Kirk Douglas on hand to sign copies of his new book the Ragman's Son. Kirk will be hidden somewhere in the store, and the first three customers to find him and touch him will win one free kindle!

FIND HIM, TOUCH HIM, WIN!


Out to lunch
By Flunk on 10/5/2011 9:31:17 AM , Rating: 2
quote:
the aesthetics of the Kindle Fire seem tired to us and clearly pale in comparison with the iPad 2


Most consumers won't care. You can't compare a $199.99 product with a $399 product. The real question is, which would you rather have, the front-runner tablet or one that is 85% as good and $200. Heck, some people may not even have that choice if they don't have the $399. Maybe it will be Kindle Fire or nothing.




RE: Out to lunch
By Flunk on 10/5/2011 9:31:50 AM , Rating: 2
Typo, I meant to say the iPad is $499.


RE: Out to lunch
By Denigrate on 10/5/2011 10:02:49 AM , Rating: 2
Yes you can. The hardware is pretty much equal, but Amazon is looking to get the hardware into people's hands so they can make money on the backend selling them books and apps.

Only thing stopping me from getting one is I don't think it has an SD slot for storage expansion. Amazon does seem to be taking a page from Apple's book in making the Fire a closed system to some degree.


RE: Out to lunch
By retrospooty on 10/5/2011 10:05:20 AM , Rating: 2
"You can't compare a $199.99 product with a $399 product"

Sure you can.

1. All tablets are overpriced at $500.
2. Android, as a platform does everything IOS does and more
3. The few features that are available on the ipad, or higher end Android $500 models and are not available on the Kindle Fire may be things that alot of us dont even care about.

I (and by that I mean my wife) just want something light and easy to browse the web with without dragging out the 15 inch laptop. To that end, any tablet will do the trick, but we arent about to spend $500 on one.


RE: Out to lunch
By wempa on 10/5/2011 4:06:03 PM , Rating: 2
^^ What he said

My wife is interested in getting a tablet/iPad type of device and I cringe at the $500+ cost of an iPad when you can get a very nice laptop for that price.


Fire (on fire!)
By zolarkingofallmoney on 10/5/2011 10:02:22 AM , Rating: 2
The Ipad is a computer for those who could never use a regular one (grandparents, handicapped, etc) or for the computer literate it's 'just enough' of a 2nd computer.
The Fire is a media consumption device (like the ipod, remember those?) and it's going to sell like gangbusters.
I bought a B&N Nook and spent the time to root it. It's no ipad but it's perfect for what I need. That's going to be the ipads Achilles heel: people don't necessarily NEED all that an Ipad can do. Once you get past media consumption, email and social media stuff...well, how many apps are you using every day? 5? 10? Most use just a few. If B&N is smart, they'll lower their price and open the nook up even further. It may turn out that there is a larger market for these devices than the Ipad. In a recession 'good enough' may win the race. History shows us that 'cheaper' certainly helps a product hit critical mass with the public.




RE: Fire (on fire!)
By quiksilvr on 10/5/2011 10:07:11 AM , Rating: 2
If Barnes & Noble is smart, they need to come out with their answer to the Fire as soon as possible, because they only have a month left.


RE: Fire (on fire!)
By TakinYourPoints on 10/5/2011 6:19:25 PM , Rating: 2
B&N are kind of screwed. Even if they got the hardware specs up to snuff, the bigger issue is that they don't have the digital media infrastructure that Amazon does. Amazon is the only other major company aside from Apple that sells movies, music, books, and mobile applications from a unified storefront.

Then there are cloud services all on top of it. Amazon nailed this with the Kindle way back in late 2007, and both Amazon and Apple have robust cloud integration and streaming for their tablets. B&N again won't be providing for any of this.


RE: Fire (on fire!)
By nafhan on 10/5/2011 11:38:58 AM , Rating: 2
You don't really do a good job explaining why the Fire is not a computer, but the iPad is. Really, the tablet form factor in general is great for media consumption, and no better than functional for most other things.

Also, good enough - at a significantly lower price - pretty much always wins the race, especially in regards to computing.


RE: Fire (on fire!)
By TakinYourPoints on 10/5/2011 6:15:33 PM , Rating: 2
Exactly, it isn't a capable device like the iPad and the screen is small, but oh man is it going to fly off the shelves for people who only want to consume video on something small.

Amazon nailed this where other Android tablet makers aren't. The integration of something like Amazon marketplace or iTunes combined with a total focus on UI and ease of use cannot be emphasized enough.


Apples to Oranges?
By KPOM1 on 10/5/2011 10:48:44 AM , Rating: 2
To be fair, what was the pre-order time for the original iPad? I don't think it was 7 weeks (I thought it was maybe 1 week), so naturally the Kindle Fire will have an advantage there. That said, it looks like it will perform well in the marketplace, and that there is finally a credible challenger.




RE: Apples to Oranges?
By lightfoot on 10/5/2011 11:28:51 AM , Rating: 2
Did Apple even allow preorders on the iPad?

Nothing sells the hipster image quite like 100 homeless looking people camped out in front of your store for a week.

Amazon can't compete with that. What is the News going to show on release day? Fleets of UPS and Fed Ex trucks delivering millions of packages to suburban McMansions? How is that "Hip?"


I was one of them....
By ncage on 10/5/2011 1:16:27 PM , Rating: 2
I already have 3G Ipad2 (verizon). I like it a lot but its over $600 for the 16GB version. My wife is constantly taking her laptop all over the house which i can tell is kind of a pain for her. She normally is just on facebook, checking her mail, and using it to read her kindle books. This device is going to be perfect for her. The only thing she does when she will still have to use the notebook is when she chats with her family using the webcam. I imagine this device will get about 90% usage compared to her computer. I just hope we are in the first group of shipping. I just ordered it a few days ago.




Fire
By gus6464 on 10/5/2011 1:54:41 PM , Rating: 2
I have an iPad 2 and I preordered one the day it was announced. Find the ipad too big sometimes so I'm going back to a macbook air and the fire.




I would order one too but....
By cyberguyz on 10/5/2011 2:54:07 PM , Rating: 2
I would order one too but....

.... I live in Canada. No Kindle Fire here.




A lot of orders
By paoloberno on 10/6/2011 10:57:54 AM , Rating: 2
Impressive numbers since it can be pre-ordered only in the US (only e-ink kindles can be ordered or pre-ordered on eu amazon sites)...




By mattclary on 10/5/2011 10:20:18 AM , Rating: 1
But I know I will be ordering one. Maybe one for my 7 year old daughter too.




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