With Amazon’s recent unveiling of their $199 Android-based Kindle Fire tablet, consumers are chomping at the bit to secure the device well ahead of its scheduled November release. In an already overcrowded tablet market, Amazon intuitively found a niche of consumers who weren’t necessarily ready to skimp on the specs, but would shy away from the competition- if the price was right.
One analyst recently published a report which actually warns Android tablet vendors to either team up with Amazon and offer lower-priced devices with Amazon content or simply get out of the tablet game altogether. Nomura International technology securities analyst Richard Windsor strongly believes that Amazon will dominate the cheap end of the tablet market with its new Kindle Fire, while Apple’s iPad will continue to dominate the high-end.
Windsor continues to explain,
“That other tablet makers with iPad-like prices are still living in denial. The main effect of the potential sea change triggered by Amazon could be a change in road map to cheaper products or possible tie-ups with Amazon.”
If existing tablet makers do start shifting over to Amazon content, it could potentially threaten Google’s strategy in the market, where it clearly wants its services to be as widely used as possible.
While Windsor may have valid points in his report, most tablet vendors are not ready to jump off the Android train completely. Tablet vendors are simply patiently awaiting the release of Android 4.0, known as “Ice Cream Sandwich” which is expected at the end of this year. Many in the industry believe the onset of Ice Cream Sandwich alone will improve Android’s competitiveness with the iPad.