Is the new Amazon Kindle Fire an iPad killer? Yes. It's the price, stupid

CNET ^ | 09/28/2011 | Molly Wood

[SeekAndFind]

Data point from one of our users: you can actually buy the entire new ad-subsidized Kindle lineup for less than the cost of a 32GB iPad.

[TSgt]

I'm not even that old and I still remember when this was a computer.

[Responsibility2nd]

At $199, virtually any mainstream consumer is going to stand next to these two devices, look at them side-by-side, and make a price-conscious decision—and that decision is easier than you might think, as tablet usage starts to sort itself out. Sure, the Kindle Fire lacks a camera for video chat and movie-making. So what? Hardly anyone is doing that with their tablets anyway. No GPS? That’s what your phone is for. No Bluetooth? Shrug. It’s one hundred and ninety-nine dollars.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

In a year from now - when the iPad 4 has bluetooth, camera and more. And sells for $199?

Then I’ll buy one. Maybe.

[pgkdan]

still is in my house...

[randog]

I miss those ‘clacker’ keyboards.

[Moonman62]

Also, 35 percent of respondents to a Staples survey said they use their tablets in the bathroom.

There's a special sensor. If you ever use it in the bathroom, the device becomes flagged and you won't be able to return it to the store.

[No Socialist]

“There’s a special sensor. If you ever use it in the bathroom, the device becomes flagged and you won’t be able to return it to the store.”

Kind of like George Kostanza trying to return his “tainted” book.

[Moonman62]

That’s a lot fancier than what I remember.

[mamelukesabre]

if apple drops their price by 200bucks, they will be ok.

[El Sordo]

Me too.

I can’t get used to the new stuff that feels like they have sponges under the keys.

[BenKenobi]

“and possibly even before, you need look no further than the $99 TouchPad buying frenzy for the lesson of the tablet market (and maybe every other electronics market, ultimately): it’s the price, stupid.”

Heh, I thought that Apple was guaranteed to win. You mean they lied?

[frankenMonkey]

"I'm Steve Ballmer, and I approve this message."

[SES1066]

I miss those ‘clacker’ keyboards.

I remember the IBM PCjr with its original 'chicklet' keyboard similar to the original Commodore - too nauseating for words.

So in reference to the "Kindle Fire" to the "iPad 2", I think that I am seeing much the same pattern. The Kindle is a successful product as is the iPad but I don't see the same for this junior tablet that draws from an enormously smaller "app workplace". In this horse race I will still ride the iPad although I am waiting for the iPad 3.

[Hodar]

If price were the ‘be-all’ then there wouldn’t be a market for the Mac, the iPhone or the iPod. People will pay for a quality product, and a quality experience. Always have, always will.

Now, I do think the kFire will be a popular seller - and as Gene Munster of Piper Jaffray is saying today “not a true competitor, but a more competitive than expected” and “Amazon is likely losing $50 on each unit it sells”.

So, how much marketshare can Amazon afford to buy? Meanwhile, Apple is showing several hundred dollars of profit on each unit it sells (ifixyour.com estimates the BOM on the 64 Gig wi-fi iPad at less than $280; it retails for $599).

Upside-great functionality, great price, nice looking.
Downside - small screen (only 7 inch), 7.5hr batter-life with video playback; less with wi-fi.

One important difference is the kFire line-up is a media consuming (zero productivity) suite; while the iPad can perform both tasks.

[cuban leaf]

A friend who is a huge Apple fan and always has been got an iPad a few months ago. He says it’s too big to really be much more portable than an apple laptop and really just good for entertainment type stuff. He doesn’t think it’s worth the money. I have to admit that 7” is a great size for portability while still getting movies and games at a good size and resolution. It’s a good portability “sweet spot”.

The article makes some very valid points about what features you are paying for vs what features you actually use.

[nevergore]

BTTT

[Hodar]

if apple drops their price by 200bucks, they will be ok.

I think they are doing just fine. Also, bear in mind that Apple is making several hundred dollars profit on each iPad, while Amazon is losing $50 on each kFire they sell, according to Piper Jaffray analyst Gene Munster.

[giotto]

There's a special sensor. If you ever use it in the bathroom, the device becomes flagged and you won't be able to return it to the store.

I can't tell whether you're joking or not, but given the fondness that companies like Facebook and Google have for spying, I wouldn't rule it out.

[buccaneer81]

Naw, This was a computer...

[Recon Dad]

Any idea if these devices have USB and HDMI ports?