Kitguru has written many articles now on the upcoming tablet release from etail giant Amazon. We have predicted that while they won’t be able to overthrow Apple as the market leader, that they should be able to shift quite a few units and take second place.
It appears that analyst Sarah Rotman Epps, from Forrester has the same views on the matter. She says that will need to price it competitively however- aiming for a sub $300 price point.
She agreed with our points that Amazon already have a solid infrastructure in place, with one of the most successful online store platforms. She said “Even though Amazon taking on Apple is a bit like David taking on Goliath (compare the market cap, profits and cash position of the two companies), Amazon’s willingness to sell hardware at a loss combined with the strength of its brand, content, cloud infrastructure and commerce assets makes it the only credible iPad competitor in the market”.
She added “The bottom line: A year from now, “Amazon” will be synonymous with “Android” on tablets, a strong second to Apple’s iPad. If you haven’t yet contemplated how Apple-Amazon tablet domination will change your product strategy, now is the time to plan and act.”
Other industry sources claim that Amazon may sell the tablet at a loss, so they can generate a large user base and recoup the money on software and download sales. Creative Strategies analyst Tim Bajarin said that they might even discount the price by $51 to ensure it is a success.
We do believe that if anyone can take a decent percentage of the tablet market, it will be Amazon. Their customers know they will be supported very strongly and that their online store system is both wide ranging and competitive against the Apple store. Their Kindle e-reader has already been a great success and they have a strong customer base to build upon.
Kitguru says: We are really interested to see how Amazon will handle the launch.