Tuesday, October 18, 2011

Amazon challenges tablet market

The Amazon Kindle Fire launched at the end of September, and could be about to throw the tablet market into confusion – according to YouGov, an online research firm.

YouGov predicted that tablet devices should plummet in price to match the Kindle Fire. In fact the price of $199 could mean that Amazon can cut up its competitors and make it a two horse race between itself and Apple.

"Apple is far and away the current UK market leader in terms of brand awareness, preference and price," said Russell Feldman, Associate Director for Technology and Telecoms Consulting. The Apple iPad is priced at $499.

The lower price of the Kindle Fire, and features make it viable to compete with Apple – along with the strength of the Amazon brand.

"What's more, it has the potential to be a major game-changer, given the depth of Amazon's downloadable content as well as its burgeoning application store - something that has underpinned consumers' loyalty to Apple over other tablets running an Android OS." Said Russell Feldman, Associate Director at YouGov.

The out-dated HP TouchPad sells between £89 and £115 – showing consumers are attracted by a good deal. The Kindle Fire, whilst boasting many a tablet temptation, some reports say it is still very much a shop window for Amazon.

Apple, as a premium product, should have no need to lower prices, but what about Android tablets? Can they price themselves between the Fire and the iPad? Or is the question – will they?

1 comment:

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