Kindle Fire from Amazon is Not a Threat to Apple, Say Analysts

Analysts believe that Kindle Fire, the ultra-portable tablet from Amazon that costs less than the iPad, will appeal only to consumers who are looking for a low-priced device for watching movies and reading books. But this device cannot pose any threat to the iPad, which as you know is available through our iPad rentals service. A Susquehanna Financial Group analyst, Herman Leung, remarked that consumers who wish to have a bigger screen and want to have video chatting facility will prefer tablets from Apple.

Amazon will ship nearly 4 million Kindle Fire tablets this year. An analyst with Wedge Partners Corp, Brian Blair, remarked that Amazon will have to come up with a larger tablet with faster processor if it wants to compete against Apple’s iPad.

Kindle Fire, which has a 7 inch display screen, is smaller than the iPad and caters to lower-end consumers. This tablet will run on Android and will have a dual-core processor. Blair remarked that if the next product of Amazon has a bigger screen and has other useful built-in feature like video chat, it may attract more consumers.

A Robert W. Baird & Co. analyst, Colin Sebastian, said that Amazon will have to improve its application store since it has said that the applications offered by Google will not be available on this tablet. He also said that the iPad is more slick and elegant than Kindle fire. Apple has around 100,000 custom designed applications for iPad. Analysts also believe that although Kindle Fire may boost the sales of Amazon, it may not quickly bring revenues to the company.

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Tuesday, October 4, 2011