Thursday, September 29, 2011

Kindle versus iPad: Will half-price challenger force Apple to cut cost too?

Android tablet will be $199
  • New black-and-white eBook readers for as little as $80
  • Gadget can access any of Amazon's 100,000 films or 17m songs
  • Will launch on November 15
  • Offers super-fast new browser, 'Amazon Silk' using 'cloud' technology
  • UK users may not see Fire before Christmas
Amazon yesterday unveiled a touchscreen tablet com-puter in an attempt to pull the rug from beneath Apple and its iPad.
The Kindle Fire, which has many similar functions, will be sold in the U.S. for $199 (£128), less than half the price of the  cheapest iPad available.
The low cost stunned technology industry watchers, who suggested that Apple and other tablet  manufacturers would have to cut their prices.
How the tablets compare
Amazon’s basic Kindle is used for reading eBooks. The Kindle Fire will combine this feature with the ability to play music, films and games and surf the internet.
Users will be able to access more than 18million movies, television programmes, songs, apps, games, books and magazines via the  Amazon website.

The device has a seven-inch screen, compared with the iPad 2’s 9.7-inch display. And unlike the iPad, it will not have a camera or be able to make video calls.
Unveiling the tablet in New York, Amazon’s chief executive, Jeff Bezos, said: ‘Kindle Fire brings together all of the things we’ve been working on at Amazon for over 15 years into a single, fully-integrated service for customers.
The Kindle Fire will offer gaming, films, music, web browsing and books - all for just $199
The Kindle Fire will offer gaming, films, music, web browsing and books - all for just $199
Amazon CEO Jeff Bezos unveils the Kindle Fire today
Amazon CEO Jeff Bezos unveils the Kindle Fire today
The e-reader and tablet has a 7-inch (17.78 cm) multicolor touchscreen - and doesn't need to dock with a PC, unlike iPad
The e-reader and tablet has a 7-inch (17.78 cm) multicolor touchscreen - and doesn't need to dock with a PC, unlike iPad
‘These are premium products at non-premium prices. We are going to sell millions of these.’
The Kindle Fire will be available in the U.S. from November 15.
Although no date has been set  for it to go on sale here, Britain will be getting the latest version of the basic Kindle, which is thinner and lighter than existing eReaders.
It will cost £89 – but even this is  a mark-up of almost 80 per cent compared to the U.S. There,  the new version will cost $79 – about £50. 
The cheapest American model is, however, supported by advertising on the 'rest' screen - where British users see Black and white pictures of authors such as Agatha Christie, Americans who opt for the cheapest Kindle see adverts instead. Ad-supported Kindles have yet to launch in the UK. 
Amazon CEO Jeff Bezos holds up the new Kindle Touch - one of several new aggressively priced models of the e-Reader unveiled today
Amazon CEO Jeff Bezos holds up the new Kindle Touch - one of several new aggressively priced models of the e-Reader unveiled today
The Kindle Fire on show - it uses a customised version of Google's Android operating system
The Kindle Fire on show - it uses a customised version of Google's Android operating system
A company spokesman defended the pricing, saying that the  new basic Kindle was the ‘most affordable’ ever.
She added: ‘Operating costs  differ by country, but as with all products on Amazon, we work hard to offer customers the lowest possible prices.’
But Professor Ajay Bhalla, a technology expert from Cass Business School in London, said: ‘Amazon has not got the pricing right. Consumers are smart and there is plenty of choice in this market.’
He doubted the Kindle Fire  would pose a meaningful challenge to the iPad because of the absence of a camera.

'WE ARE LIKELY TO SEE CHRISTMAS LISTS REWRITTEN OVERNIGHT...' KINDLE FIRE: THE REACTION

'The price is pretty amazing. With all of those services backing it up, there's a lot of reason to think this will make a big splash,' Stuff editor Will Findlater told Mail Online after the launch. 'This is a staggering price.'
'The Kindle will remain the de facto choice for people who just want to read – and there are lots of those - while Fire caters for those of us who want gaming, film, and apps.' 
Analyst Dominic Sunnebo Kantar from Worldpanel ComTech said, 'Over 25% of consumers who plan to buy a tablet in the next year remain undecided which brand  buy. Over 50% of people who want to buy a tablet are waiting for prices to come down. We are likely to see Christmas wish lists rewritten overnight.'
Amazon's Silk browser met approval from sites such as TechCrunch, who wrote, 'It's not a terribly new concept - but it's one that could make a huge difference in a user's web experience.' 
Engadget noted the similarity between Fire and BlackBerry's clunker the PlayBook, but wrote, 'Software performance seems quite smart at this point, switching tasks and apps in rapid fire. We were only shown a brief glimpse of the new Silk browser, but we must say the thing appears to deliver on its promises. Ultimately the Fire is looking like a nice little device.' 
Gizmodo were even more effusive, saying, 'This is incredible. This is a killer price for a color tablet. Even while it doesn't match the iPad's features, there's going to be some fierce competition this year.'
Reactions on Twitter ranged from 'They're out of their league' to outright disgust - but were outnumbered vastly by users saying they had already pre-ordered.
Twitterer Chris Lehmann noted that the name was possibly ill-advised, saying, 'Does an online retail behemoth built on book sales want to be marketing a product called Kindle Fire?'  

Bezos introduced a line of four new Kindle products, the Kindle Fire tablet, the Kindle Touch 3G, the Kindle Touch and a new lighter and smaller Kindle
Bezos introduced a line of four new Kindle products, the Kindle Fire tablet, the Kindle Touch 3G, the Kindle Touch and a new lighter and smaller Kindle
The device will also offer users games - including, naturally, yet another platform on which to play the iPhone hit Plants vs Zombies
The device will also offer users games - including, naturally, yet another platform on which to play the iPhone hit Plants vs Zombies

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