There is no doubt that the Apple iPad has led the way in an increasing tablet market. Several brands have jumped into the fray with limited success. Clearly entry alone does not guarantee success.
So, it is particularly interesting to watch Amazon jump into the mix with both feet. While other entrants did not seem to have a clear reason for being, Amazon has entered the market at an extremely aggressive price point – $199 with its Kindle Fire. So the question is, did Amazon enter the market with the right strategy, price point and array of features? Does it make sense for Amazon to launch the product for a selling price of $199, when their cost is reported to be $250. Will a smaller screen (7″ vs. 9″), lesser internal storage capacity and no 3G capability hinder its success?
These decisions are extremely difficult to get right. For those readers out there responsible for these kinds of decisions for their brands, a private online advisory community can be a great tool to get answers.
My take is that Amazon will be extremely successful with the Kindle Fire. My guess is that the team at Amazon did their homework and know there are a large group of people that will be very excited to become tablet owners at the $199 price point. Their position is further strengthened by providing easy access to Amazon’s content and cloud services.
What’s your take, did Amazon get this one right?