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    Amazon targets the iPad: Ready, aim, Fire

    NEW YORK (AP) โ€” Amazon is taking on the untouchable iPad with a touch-screen tablet of its own.

    The company on Wednesday introduced its entry in the rapidly expanding market for handheld computers โ€” a device called Kindle Fire that connects to the Web, streams movies and TV, displays e-books and supports thousands of apps.

    It's half the size of an iPad and will be less than half the price when it goes on sale Nov. 15. Amazon is offering the Kindle Fire for $199. The bare-bones iPad sells for $499, the most expensive for $829.

    Of course, competing with the iPad won't be as easy as swiping a finger.

    Analysts at one research firm, Gartner Inc., say three of every four tablets sold this year will be iPads. Apple sold almost 29 million of them from April 2010 through June of this year.

    Amazon sells more than 1 million e-books, 100,000 movies and TV shows, and 17 million songs. It hopes it will succeed where other companies have failed because the tablet is designed to tap into Amazon's massive storehouse of media content.

    "The reason they haven't been successful is because they made tablets. They didn't make services," CEO Jeff Bezos said in an interview.

    Bezos unveiled the Kindle Fire at a New York media event that was stage-managed much the same way Apple choreographs its product launches. He walked a stage extolling the product while technology sites live-blogged the event.

    The CEO also introduced three versions of its popular Kindle e-reader, all with black-and-white screens โ€” a basic model for $79, a touch-screen version for $99 and a touch-screen with 3G wireless service for $149.

    Those devices will further pressure competitors like Barnes & Noble as they try to break Amazon's dominance in electronic book sales.

    The Kindle Fire's size, with a screen that measures 7 inches (17.7 centimeters) diagonal, makes it a close match to Barnes & Noble's Nook Color tablet, which came out last year. But while Barnes & Noble sees the Nook Color as a jazzed-up e-reader, Amazon has broader goals for the Fire as a platform for games, movies, music and other applications.

    All that content makes the Fire the only credible competitor to the iPad this year, said Sarah Rotman Epps, an analyst with Forrester Research.

    "In theory, Sony could do something similar, but they haven't, and it doesn't look like they will," she said. "They have a tablet, but they only went halfway on the services."

    Sony started shipping its first iPad-style tablet two weeks ago. It's linked to the company's music and movies stores, and the capability for some PlayStation games will be added later.

    Analysts had expected the Fire to sell for about $250. Epps called the $199 price "jaw-droppingly low," and said it would be tough competition not just for Apple, but for contending tablet makers like Samsung, Motorola and HTC.

    Analysts had speculated that Amazon would sell the tablet at a loss, counting on making back some money through book and movie sales. Bezos said that isn't the case, but that the company is happy with a slimmer profit margin than other manufacturers.

    "We want the hardware device to be profitable and the content to be profitable. We really don't want to subsidize one with the other," Bezos said.

    Epps said she believes Amazon could sell as many as 5 million Fires by the end of the year but will probably sell closer to 3 million because it's coming out so late.

    The Fire will run a version of Google's Android software, used by other iPad wannabes, and will have access to apps through Amazon's Android store.

    Unlike competing tablets, it will not have a camera. Bezos said the camera would be superfluous, since practically everyone has one in their phone anyway.

    It also lacks a microphone and a slot for memory expansion, common features on other Android tablets. The Kindle Fire will run on Wi-Fi networks but will not connect to cellular networks, as some iPads and many Android tablets can.

    The new Kindle e-readers dispense with the keyboard that the device has carried since it launched in 2007. The Kindles will come with on-screen advertising unless customers pay $30 to $40 more.

    Bezos said he doesn't see the Fire as eventually replacing the Kindle, which is exclusively for reading.

    "What will happen is people will buy both. Because they're really for different purposes," he said.

     

    27 comments

    • Rayvyn  •  7 mths ago
      All I want to know is if it will support Flash Player. I bought a phone, the Samsung Admire and they said it supported Flash. But come to find out it supports Flash menus but not Flash Player. So if this supports Flash Player then it's worth it.
      • McC 7 mths ago
        yes it does support flash, go to amazons web site and read the info they have posted on it, its really pretty impressive for $200 bucks
      • Rayvyn 7 mths ago
        Thanks. McC I just read where it supports Adobe Flash Player. But it is worth $199 not just because it is a great device, but because it will drive down other tablets from ASUS and Samsung!
    • emphrank  •  7 mths ago
      If "What will happen is people will buy both. Because they're really for different purposes..." and "...the camera would be superfluous, since practically everyone has one in their phone anyway..." are true, then aren't we talking about a $500-$600 gaggle of devices competing with the iPad?
      • we're screwed 7 mths ago
        None of them are worth a crap either.
      • Dan 7 mths ago
        Beezos is saying people like choices, each for a specific purpose. I have a Sony Reader for reading, an Android phone w/ a camera, and an iPad2.
    • amxtaylor  •  7 mths ago
      2 inches smaller is not half the size. It's also slightly thicker but lighter.
      While some comments talk about this not being a competitor to the iPad, in a way it is. By carving a new, less expensive market, it will erode sales of iPads as not everyone wants, needs or can afford the iPad.

      Another aspect of this is technology turnover. Anyone who has had portable devices like this know that after about 3-4 years, you won't be using it as much and the "next big thing" will be in the crosshairs of your wallet. With a device like the Fire priced at a third of the iPad, people can afford to get the "next big thing" - in that device class - once every 12-18 months.
      • Pepe Pepe 7 mths ago
        Actually it is almost 50% smaller. The 2 inches is in DIAGONAL measurement.

        This fact has being discussed to death and it is being settled / proven as mathematically factual.
    • Citizen concerned  •  7 mths ago
      If successful, it won't be long before Apple offers a "cut-down" version of the Ipad. When playing with the big boys, you have to be prepared for all the competition. We'll see if the loss of Steve Jobs will affect the future of Apple.
    • Safas  •  7 mths ago
      Disappointing, to say the least, since those important features such as integrated cameras are standard and people have become accustomed to having them in their electronic devices such as tablets and phones. Besides, the technology to incorporate these features are cheap and affordable. I'm surprised to see Amazon pooh-pooh-ing things which have become part of our daily lives here in the US, however extravagant they may be in other cultures. Failing to meet the expectations of the American consumer does excite this kind of response and the proof is all around us. Good luck to Amazon on coming up short.
    • Tracked by Republi-bots  •  7 mths ago
      Is there any such thing as "nuanced" tech industry analysis? Like the fact that this tablet serves fundamentally different purposes than the iPad, even though there is some functionality overlap? That they are marketed at different types of people for different reasons? That they can co-exist, even amongst the belongings of a single individual? Just because the "blender" was invented doesn't mean the hand mixer or even the wire whisk is obsolete or that they are in direct competition?

      I guess provocative over-simplified articles is what gets clicks and readers don't have the intelligence or patience to read anything deeper "oooo! It's a THROWDOWN! FIGHT FIGHT!"
    • TechMan  •  7 mths ago
      One thing companies with tablets coming out don't realize that they have become lifestyle gadgets. Apple has successfully managed to target the right consumer segment with their premium pricing. That segment also buys more apps and content.
    • McC  •  7 mths ago
      my wife has a color nook, its a great reader, but when you acess the internet with it, its kind of like having old dial up 56k. extreamly slow and a pain to use, (but good in a pinch) Amazon has developed its own browser techn. that is going to be lightening fast, and feature rich. the fire is a tablet that has a reader, the nook is a reader that has some tablet features
    • Ken F  •  7 mths ago
      Does this bit of kit have an e-ink screen?,so that it can be read in bright sun.I know it has colour but I like black and white for reading.
    • Jay  •  7 mths ago
      "By PETER SVENSSON - AP Technology Writer" do you even know about tech? This is NOT a direct competitor to the IPad. It's a completely different market. This is, at best, a competitor to the Nook and other similar basement tablets. Not sure why you AP types keep positioning this as an IPad competitor. I suppose it gets readers. I don't even like the IPad (don't own one either, it's over priced...and other things), but it's a much better product than this thing. This is an entry level 7 inch tablet.
      • Citizen concerned 7 mths ago
        AP story "line" only for the readers. Period. And, no, the IPad is not over-priced. Apple makes its money with other, related concepts with the IPad. Apple sells the IPad with a small profit margin and that strategy paid off.
    • Lakes Lady  •  7 mths ago
      I can already have extra storage and move from computer to Nook Color via mini SD card.
    • Observer  •  7 mths ago
      There's something for everyone. All the debates mean nothing. If you are happy with your device, it makes no difference. It seems people just love to debate to show is more intelligent in the matter. It's a lot of hot air!
    • David S  •  7 mths ago
      In my view, the Fire is about half way between the old Kindle and the bottom of the line iPad. Itโ€™s priced about right for what it is. It will kill off the iPad on the same day that KIA kills off BMW.

      In fact, there is a very good chance that this will actually increase Appleโ€™s iPad sales. The flood of tablets hitting the market, including the Fire, Nook, Playbook, and all the Android tablets, is creating a huge amount of publicity. The tablet โ€œchatter levelโ€ is getting so high now that many consumers are being awakened. Someone who didnโ€™t think they wanted or needed a tablet just a few months ago may be swept up in the global wave of tablet enthusiasm. The idea that a tablet is something you really need and ought to have is being validated.

      So once you and your spouse decide that perhaps you ought to get a tablet, the next step is to check them out and see whatโ€™s available. After a few trips to BestBuy and the Apple Store, there is a very strong possibility that you will opt for the market leader and best tablet out there. That would, of course, be Apple and the iPad.

      I think the biggest mistake that many tablet purchasers make is to get one with WiFi only connectivity. Many of the very best and most useful apps make use of GPS location services and availability anywhere. Pricing for 3G connectivity is much better for tablets than for smart phones (no contracts, low cost plans that can be started and stopped and upgraded or downgraded on the fly). Itโ€™s a joy to be able to use an iPad wherever you happen to be regardless of whether or not WiFi is available.
      • Emeritus S. Angry Bird 7 mths ago
        Agreed with you on the 3G for tablet. No point getting a tablet without 3G connection, be it ipad or other Android tablet. You will miss out alot of fun without 3G. Normally the different in price between 3G and wifi only tablet is about S$150 to S$200, it's worth the money.
      • Pepe Pepe 7 mths ago
        Actually the difference is $150 for the HARDWARE + no less than $720 for the two year contract for 3G/4G service. So the difference is actually $870 or more.
      • Tracked by Republi-bots 7 mths ago
        Your car analogy is better than my "food preparation device" analogy... but the point is that just because they're both "tablet like" doesn't mean that one device makes the other "obsolete"
    • Snarkbark  •  7 mths ago
      Android = No Thanx.....
    • MrClarenceCat  •  7 mths ago
      Just like cars, this will create two different markets for tablets. The Fire for a low cost entertainment tablet on one end and the ipad as the high priced full featured tablet at the other end.

      I think this will play out very well for Amazon and Apple. However the rest of the tablets will have problems as they keep charging high prices for low value items.
    • Paleo  •  7 mths ago
      No access to the Android store, only to Amazon's current Android offerings? $200 for only 8GB internal storage versus 16/32/64GB for iPad & the rest. Current prices of SSD internal storage put any tablet over the $250 mark.
    • Lakes Lady  •  7 mths ago
      The screen is too small for the Amazon model to even remotely compete with iPad. My Nook Color does all that, has storage and already play games movies, etc. and I have my laptop for more intense computing. amazon's item is nothing new and certainly comes out WAY after the popular Nook Color. My Nook Color also has access to many Android apps and can sync with my computer so Amazon, you're too late
    • McC  •  7 mths ago
      you can tell from the post, that most of the neg ones come from people that have not taken the time to go check out all the info on this. The cheap made in china clones are going to take a beating, Fire vs Ipad $200 vs $500 or more, free wi-fi vs 2 year contract @ $100 a month. no phone, no camera, unlimited cloud storage of amazon stuff and 8 gig on board (more that enough for most people) and since developers design apps to make $$$ you are going to see a big surge in apps available at Amazon. They have tapped in to a very large and neglected market, people who don't have, want or are not willing to pay for smart phone, ipad, 2 year contract. Just the amount of made in china android tablet clones on the market today, ought to give you some idea of how big this market is.
    • Bob  •  7 mths ago
      Saying that this is the only real competition for the iPad is ridiculous. What's the fastest tablet on the market right now? The Archos G9 series which outspecs the iPad for half the price? This article contains less research than 10 minutes on Google.
    • vic trolla  •  7 mths ago
      what a bunch of CRAP
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