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

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

Is, 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, 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'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. 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. 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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Out to lunch
By Flunk on 10/5/2011 9:31:17 AM , Rating: 2
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.

"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007

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