backtop


Print 28 comment(s) - last by robinthakur.. on Nov 7 at 5:40 AM

Apple suggests that popular Kindle Fire will hurt Android

Thus far Samsung Electronics Comp., Ltd. (KS:005930) has been the only Android tablet maker to make major inroads against the wildly popular Apple, Inc. (AAPL) iPad's dominant market share.  But that situation is about to change thanks to Amazon.com Inc.'s (AMZN) new Android-powered Kindle Fire tablet.  Priced at $200 the tablet is the cheapest Android tablet to hit the market yet, and its specs are surprisingly respectable.  Driven largely by the attractive price, the tablet was registering pre-orders of 50,000 units a day in lieu of its November 15 launch.

Of all companies, you would think this would be most concerning to Apple.  However, Barclays analyst Ben Reitzes claims that Apple's top executives are entirely unphased by the Fire's success.

In fact, he says that in a recent meeting he had with Apple CEO Tim Cook and CFO Peter Oppenheimer, he was told that Apple was pleased with the Kindle Fire's success, which they felt would fracture the Android market and solidify their lead.

He recalls:

While the pricing at $199 looks disruptive for what seems to be the iPad’s most important rising challenge, the Amazon Fire – it is important to note that it could fuel further fragmentation in the tablet market—given it represents yet another platform. While compatible with Android, the Apps work with Amazon products. The more fragmentation, the better, says Apple, since that could drive more consumers to the stable Apple platform. We believe that Apple will get more aggressive on price with the iPad eventually but not compromise the product quality and experience.

Usually when critics of Android talk about "fragmentation", they're referring to the fact that different handsets are running different version of the base OS tree, as Google Inc. (GOOG), the maker of Android, relies on carriers and hardware partners to push out updates (and some updates are compatible with older handsets for hardware reasons.

The "fragmentation" created by the Kindle Fire is a bit different.  The tablet does not run  a standard build of Android at all.  Amazon branched the OS before Android 2.1, and thus has written much of the interface itself.  It's added in multi-touch and a new browser.  
Kindle Fire in bag

Many argue this is a selling point.  Apple apparently thinks its disastrous for Android.  

Of course the Apple brass's objections could simply be sour grapes.  Some believe that in eschewing the baseline Android, Amazon made itself harder to sue -- Apple's favorite technique to try to stifle would-be Android competitors.

But with Amazon cranking up production and at least one analyst predicting sales of 5 million units this holiday season, we're guessing Amazon and Google aren't losing any sleep over the tablet's success.  Clearly, one man's fragmentation is another man's differentiation.

Source: Business Insider



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Disastrous? On what planet...
By Tony Swash on 11/4/2011 12:53:23 PM , Rating: -1
Android is winning!

Despite a sequential drop in iPhone sales in the third calendar quarter of 2011 as customers held out for the iPhone 4S, Apple once again seized over half of the profits generated by leading mobile phone manufacturers during the quarter, according to a new research report by Cannacord Genuity analyst T. Michael Walkley and shared by Forbes. According to the study's estimates, Apple raked in 52% of the overall profits during the quarter, down slightly from 57% in the second calendar quarter but up from 47% in the year-ago quarter that also had the then-new iPhone 4 on the market.

In an epic reversal of fortunes, Mr. Walkley pointed out that in 2007, Nokia had 67% of operating profits while Apple had just 4%. Today, while Apple has 52% of industry profits, Nokia has been relegated its rival’s former position with just 4% of operating profits.

Android is winning!

Shares in LG Electronics plunged 14% on Thursday as the company announced a 1.06tn won (£590m) rights issue which will be used mainly to fund a revival of its loss-making smartphone business.

LG – which has made smartphones using both Google's Android and Microsoft's Windows Phone operating systems, but is now focussing more strongly on Google's platform – saw its smartphone market share fall in the July-September quarter, according to recent figures.

Android is winning !

But as part of the testimony, Creighton said briefly (before she was cut off) that 2/3rds of mobile search comes from Apple iOS devices. That’s pretty interesting considering the share of Android devices in the market. But not altogether surprising considering the web browser market share which includes those millions and millions of iPads.

Android is winning!

Another quarter, another financial loss for Motorola Mobility. Net revenues in the third quarter were $2.4 billion, up 20 percent compared with the year-ago quarter. The GAAP operating loss was $41 million compared to an operating loss of $43 million in the year-ago quarter.

Android is winning!

A year ago, laptops represented two-thirds of Boingo’s connections, and two years ago, just a quarter of machines accessing the airport Wi-Fi networks were mobile devices.

“Since the launch of the iPhone in June 2007, we’ve seen a marked growth trend for non-laptop devices, but the exponential growth in iPhones and iPads in the last year pushed mobile devices past laptops, showcasing just how disruptive the trend is,” Boingo VP Dawn Callahan said in a statement.

Apple’s iOS continues to dominate the mobile space, accounting for 83 percent of the mobile total. Combined, all Android devices are still a distant fourth place behind the iPhone, iPad and iPod Touch when it comes to popularity on Boingo’s network

Note: I wanted to include the news article links but the stupid DT spam filter blocked them ( and you still cannot include the word s h o e in your post - test for yourself).


RE: Disastrous? On what planet...
By nafhan on 11/4/2011 1:21:07 PM , Rating: 2
Your first point is interesting, but none really say much of anything about Android. LG and Motorola aren't doing great. That would be meaningful if they were the only companies making Android devices, but HTC and Samsung are both doing extremely well. Lots of people are using Google services on Apple devices... that's great for Google and sort of bad for Apple, but, again, doesn't really say much about Android in particular. Finally... It's kind of silly to even mention Boingo (a wifi hotspot provider). Most Android devices are sold with fairly generous 3G data plans - whereas many iOS devices are wifi only.

What the stuff you mentioned says to ME is that Apple's got a great thing going with their profit margins, and that we've got a very competitive marketplace out there. It definitely doesn't say one or the other is "winning" (even sarcastically).


By retrospooty on 11/4/2011 3:21:01 PM , Rating: 2
"Android is winning! "

Girls, girls!!! , your both pretty, now stop fighting.


"Folks that want porn can buy an Android phone." -- Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki