There’s been a lot of buzz since Amazon introduced the Kindle Fire last week. It’s been touted as the next “iPad killer” and crows of the imminent doom of Apple were heard. Except.. the Fire won’t do either of those things. In fact, it probably won’t even take much of the iPad’s market share.
Because it’s not a tablet competing in the same market as the iPad. Simple as that. The Fire is not a universal tablet that can be customized into any of a number of roles. That’s what the iPad is. Instead, the Kindle Fire is a tablet that specializes in the job of delivering content – namely books, magazines, and the like.
That’s a different market. The only rivalry between Amazon and Apple will be where the two markets converge, but that’s a small segment for both of them.
Here’s what I mean:
The Kindle Fire is a tablet second, an e-reader first. It’s primary purpose (and the reason, incidentally, that Amazon is selling it at a loss) is to deliver content. Content which, it so happens, Amazon is the world’s leader in delivering. It’s not there to act as a platform for apps, Internet connectivity, or as a portable Netbook replacement. It’s there to make it easy for the user to access books, magazines, movies, and so on from the Amazon Web platform.
That seems very straightforward. Apple makes its money by selling gadgets. Amazon makes its money by selling information (content). The two companies are very different. They are not generally in competition. In fact, there’s a Kindle app for the iPhone.
All this talk about the Kindle Fire being an iPad killer is nonsense.