Published on September 29th, 2011 | by Kyith0
Kindle Fire at $199 : Amazon really understands that it is a service game
We talked about a fair bit at Productive Organizer that this tablet war have actually become an IPad war. Specifically iPad versus the rest. Android tablets, HP Touchpad and Blackberry Playbook all refused to take off.
What took off? Cheap readers or tablets sold by Amazon and Barnes and Noble. Amazon have a really successful business here with the Kindle.
Amazon understands the tablet business model
I am really impress that Jeff Bezos of Amazon really gets this game
- Its not about the hardware. It is a services game.
- Loss Leader: Sell the hardware cheap like the xBox or Printers. That acts as the channel for people to easily buy your products.
- It is essentially similar to the iTunes. They are a retail operating system.
- Leverage on the cloud to increase users switching cost and greater tie in to your network.
- Conversion to Amazon Prime: When they convert consumers to Amazon Prime, consumers get addicted to the ease and way to purchase things off amazon.
- It gets tablets in the hands of a lot of folks who otherwise wouldn’t be able to afford an iPad. It’s an offering for the mainstream – which is a great thing.
Game changer price
You can say all you want about this device not having 3G but at the price of $199 this will really change how the competitors compete.
One of the best device currently is the Galaxy Tab 7 inch at $350. That’s almost 75% more than this Kindle.
This product is in a really sweet spot because
- it is cheap enough that high bracket consumers who have an iPad is able to get one of these.
- people who don’t like Apple can get one of these
- for people who want to try out the Android ecosystem this is a massive undercut to Motorola, Samsung and the others.
Game theory will see that the price of the rest of the tablets will come down.
The importance of hardware and software integration
The hardware is mixed
- TI OMAP4 800 MHZ Dual Core Processor. Not sure how good this is. We will have to do an actual usage review to know. I don’t really trust OMAP processors.
- 7 Inch IPS Screen. With the Kindle Fire we have a 7″ IPS panel with a 1024 x 600 resolution that features great colors and exceptional viewing angles.The IPS display truly has an amazing set of viewing angles thanks to the IPS panel and can be seen at 178° and more.
- Physical dimensions are 7.5 x 4.7 x 0.45 inches (190 x 120 x 11.5mm)
- Gorilla Glass
- Only Registers 2 points on Multi Touch (iPad have 11).
- No 3G, GPS, Microphone
- WIFI 802.11n
- Android Based
- A 3.5mm headphone jack is naturally included as is a pair of top-mounted stereo speakers.
- 8 GB of storage. With only 8GB of solid-state-storage space on the Kindle Fire, there is plenty of room for e-books, and maybe a few other document types, but not much else. Even then, we’d want to know how much of that 8GB is left over after operating system and app overhead. Note that the 64GB 11-inch MacBook Air, for example, leaves you with only 49GB of usable space right out of the box.
Make no mistake, the hardware means jack and only the integration of software, cloud services and hardware matters. The major downside is no camera, microphone and expansion slots for additional storage.
Clearly Amazon wants this to be used as a reader and not anything else.
Waiting for the hackers at XDA Developer to root this and custom rom it.
Another big driver in the overseas market is when XDA Developers have hacked and custom rom this kindle. Just like the Nook, it took off because for a low price you get a reasonable hardware to do many stuff.
So what do you think? Will you get the Kindle fire? The Kindle Touch at $79 dollars look great as well!