29 Sep '11, 4am

[Comment] Launch of Amazon tablet

The company has priced the Kindle Fire at $199. The pricing is critical to gain traction in the tablet market where the iPad has effectively become the defacto standard. Rival manufacturers have failed to attract consumers as they have matched the iPad’s price point without matching its content offering, whereas the Kindle Fire has access to Amazon’s content store and is half the price of the cheapest iPad model. Amazon’s retail-based business model allows the company to subsidize the device on the premise that consumers will buy more from Amazon, be that physical goods or its digital content. This model is the direct inverse of Apple’s model; Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devices.

Full article: http://www.malaysianwireless.com/2011/09/launch-of-amazon...

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