Sep 102012
 

According to media reports, the rumors that before Apple is expected to release the small size screen Tablet PC “iPad Mini” next month, Amazon upgraded the Kindle Fire last week . There are news that Apple’s “iPad Mini” screen will be 2 inches smaller than the 9.7-inch iPad products, and it’s aimed against Google Nexus 7 and Samsung Electronics Galaxy Tab.

However, market analyst surprised that Amazon not only upgraded the existing Kindle Fire products, but also announced a very aggressive price point, and the 8.9-inch Kindle Fire able to compete with the large screen iPad.

In accordance with Amazon’s plan, the basic version Kindle Fire price is $159, $40 cheaper than the $199 Nexus 7. The high-end Kindle Fire is priced at $499, $230 cheaper than the iPad able to access 4G service. At the same time, according to Kindle Fire cheap data plan, consumers using the service will save $410 each year.

When the vast majority of Apple profits is from the sale of hardware products, Amazon’s business model is completely different – the company provides the hardware subsidies, which is designed to sell more contents and services to users. Amazon’s pricing strategy may attract attention of Apple and other tablet PC manufacturers managements.

The investment bank Sterne Agee said in a report, “We believe that the outcome of the game is that the Amazon’s very aggressive pricing strategy, will cease to profits of the Tablet PC manufacturers except Apple.”

Currently, Amazon has provided consumers with a dozen Kindle choices, from the cheapest $69 e-book reader, to the most expensive $599 64GB version accessable the 4G network Kindle Fire HD. Market analysts said, so many choices may cause confusion among consumers, but it also represents the strong product line.

Kindle Fire HD has not yet accepted evaluation,, and Apple is still ahead of other competitors in the number of applications. But Amazon’s action expressed that the company has launched a product that can compete with the iPad for the Christmas holiday shopping season this year

  One Response to “Amazon tablet PC strategic sets the market into panic”

  1. Great post, great topic, I am always amazed by this.

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