Its price may be its greatest attraction to rival the iPhone
Amazon tablet expected launch today, priced low enough to pose for the first time a serious competitor for the iPad Apple.
In a press conference to be held this Wednesday morning in New York, Amazon probably present a 7-inch tablet that will allow users to read e-books, online music and watch downloaded movies and TV shows.
Analysts expect the device is priced around $ 250, almost half of what it costs Apple iPhone, which retails from $ 499. “If Amazon puts a price of $ 250 for the Kindle Fire, has the potential to become the most successful competitor iPad,” said Gene Munster on Tuesday, an analyst at PiperJaffray.
Having your own ‘tablet’ is important for Amazon because the company has accumulated a lot of digital products and services that can be sold through the device. As the world’s largest retailer on the Internet, a tablet could also encourage customers to Amazon to buy online more frequently.
Munster surveyed 410 consumers last week, asking if they would buy an iPhone with 10-inch screen to $ 599 or a ‘tablet’ Amazon ‘7-inch screen to $ 249. Just over 60 percent of respondents said buy the device from Amazon, While 21 percent said they prefer to buy the iPhone, according to Munster. The analyst said he used a price of $ 599 because the average price of the iPhone.
“It comes down to price,” said Colin Gillis, an analyst at BGC Parnters. “To get into the market of ‘tablets’, that is really the only variable that can compete right now,” he said.
A lower price of ‘tablet’ of Amazon may mean that the device is less attractive and details that the iPad. Amazon outsourced the design and manufacture of hardware Quanta Computer Inc, a Taiwan based company that manufactures computers and ‘tablets’ for other companies, according to news website on electronics gdgt.com.
The Kindle Fire could have a slower processor than the Playbook Research in Motion Ltd, which is also manufactured by Quanta, said this week gdgt.com. TechCrunch said the Fire Kindle will not have cameras, unlike the iPhone.
However, Munster said the absence of sophisticated users will not stop ‘tablets’. PiperJaffray survey showed that the four main uses given to the ‘tablets’ are internet surfing, reading, watching movies, and play. “If Amazon can offer these four things at a price of $ 249, we believe there is a strong interest in its” tablet, “said Munster.