
Amazon recently announced 4 new devices: three e-readers and a Tablet dubbed ‘Fire’. With all the ongoing hype around the search for the iPad killer, or at least a worthy rival, the media focus naturally fell on the new 7-inch Android powered device. And while the Fire looks a cheaper less ambitious tablet at first sight, it might however prove to be a serious contender, maybe even more serious than more established competitors.
GigaOM senior writer Mathew Ingram wrote on Wednesday “The company (Amazon) has deep pockets — although not quite as deep as Apple’s — it also has something that Apple doesn’t when it comes to the content side: an existing relationship with many users that’s based around subscribing to magazines, buying books, etc.” Amazon has been accumulating users since it first went online in 95, something which definitely puts in a strong position against Apple, and more importantly other tablet manufacturers such as Samsung, Motorola, and Acer to name a few.
Second, even from the content providers’ side, Amazon seems to be well positioned to put up a fight. The way Apple and Amazon are approaching the tablet market is different. Apple uses content to sell more hardware. Access to music for example allows it to sell more iPods. Amazon on the other hand sees the Kindle line, the Fire included, as a way to sell more content which, according to Mathew, “makes it simultaneously more appealing as a partner for media companies and at the same time a potentially more dangerous one as well.”
Third, Amazon is also able to match the way Apple ties in customers with the iCloud. “By tapping into Amazon’s cloud infrastructure to offer free cloud storage and backup of all content, users don’t have to worry about irrevocably deleting something from local storage.”
Finally, as Ryan Kim remarked on GigaOM, “One secret to success I was reminded of recently goes something like this: Set expectations and then make sure you exceed them, even by a little.” While the Fire doesn’t promise as much as other available tablets, as it lacks some basic functionalities like a camera for example, if it delivers on what it promises it is sure to win. “It’s not trying to be an all-purpose tablet, but instead has a clear goal and a price that fits.”
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