Tuesday, September 27, 2011

Why Amazon Kindle Fire will be a success

IMHO there will never be an iPad killer. *Ever*. That out of the way, the Amazon Kindle fire will in all likelihood be a winner. Here are my reasons

  • Price - All said and done, the price matters a hell lot. If Kindle Fire is priced right around $250 it will sell well. There are a whole lot of people who cannot afford the iPad but need a good alternative and Amazon can plug that hole. It was ridiculous of everyone else to price their tablets anywhere close to the iPad and well some of them are already history
  • Content - Content is the king and at this point of time apart from the Appstore, the only content worth consuming is from Amazon. They seem to have a sound strategy around ebooks, magazines and their own app store which will grow leaps and bounds once their devices start selling.
  • Online sales - Some nifty offerings to people who buy content from Amazon can lead to a whole lot more of sales and i am sure Amazon will exploit that to the hilt. I do not believe that the tablet strategy will be independent of their other offerings (e.g Amazon prime, Music Streaming, Cloud Storage, Kindle reader will all be tightly integrated in the tablet and will be a seamless experience for the user)
  • Distribution - They need to have stores around the world for them to really take off. This is a sore point for Amazon. They dont have the stores like Apple has and if they can work out a distribution strategy for non US/Europe countries (read BRICS), the price point will be a significant factor in ensuring the sales take off
 The next few weeks should clear the air. I don't own the iPad but not too far in the future, i see myself owning both the iPad and the Amazon Kindle Fire.


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