Kindle Fire targets different market than Apple's iPad 2

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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.

"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."

Comments (43)

apple ][

said about 10 years ago

If I was unfortunate enough to have been in a chainsaw accident and I happened to lose 8 of my fingers, I just might consider the Amazon tablet, seeing that it's only two point multitouch.

igorleandro

said about 10 years ago

At "under $100" budget, that is the way to go. Quite frankly, I would have one of those, save that I already have an iPad. That is a market that Apple is definitely not going for, and where they will probably succeed. I still remember my wife and I talking about it, and one of those might solve her needs for a "digital book reader" much better than the previous models.

Ditching the physical keyboard is also a +++ in my opinion. The product is finally mature enough.

ivabign

said about 10 years ago

While I own an iPad and think it is a great device - I think the condescension at the end of his statement - "tired" might be missing the mark...

This device has a different demographic - and for what that demographic wants - this item is far from "tired" - it is a quality device at a great price.

They will sell millions.If you are looking to this person for investment advice - you stand to lose money.

He is like the broker who "Could have made me a millionaire! .....If I had started with 10 million!"

ahmlco

said about 10 years ago

"While half the price of Apple's tablet..."

'Nuff said.

There's no doubt that Apple's hardware is better. But they will compete against one another, and at that price point the Fire will be "good enough" for a lot of people.

Everyone does the iPad comparison, but to my mind the people who just got really screwed are Samsung, HTC, RIM, and the like.

There's Apple, now there's Amazon, and then there's everyone else...

shaun, uk

said about 10 years ago

I can't imagine it's going to be much fun watching a tv show or film on the 7" screen, although I can see a lot of parents buying one for their kids just because it's cheap.

So far none of the 7" tablets have sold well. I wonder if this will be any different.

I hope Apple come back fighting with a radical new iPod Touch but I'm not holding my breath.