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Wednesday, September 28, 2011, 09:50 am PT (12:50 pm ET)

Kindle Fire targets different market than Apple's iPad 2

A note issued Brian White of Ticonderoga Securities says there is a market for Amazon's new Android based color Kindle Fire model, but that it is "not the market that Apple is addressing."

White wrote that "while Amazon's price point, installed base, digital content and cloud ecosystem will attract a certain consumer demographic to the Kindle Fire, there is still no real competitor to the iPad 2, in our view."

Instead, the analyst stated, "essentially, we believe the Kindle Fire addresses a different market than the iPad 2, a tablet-light user on a tight budget that may not have yet purchased a tablet or already use a Kindle."

While half the price of Apple's tablet, the Kindle Fire "lacks the enhanced capabilities, aesthetics, power and rich features found on the iPad 2," White said.

Kindle Fire


"We find the 7-inch screen too small for a tablet device as Steve Jobs has previously highlighted, while the lack of a 3G connection will keep consumers confined to a Wi-Fi world. We believe Apple's long history as both a hardware and software company will continue to drive greater technological innovation in the tablet market versus Amazon. Also, the aesthetics of the Kindle Fire seem tired to us and clearly pale in comparison with the iPad 2."