
Amazon’s upcoming release of their new tablet, the Kindle Fire, at a price of $199 will possibly light up the competition against the leading iPad by Apple. Although it may be missing many functions that the iPad has, it’s set at a price that may position it where no other tablet is on the market.
However, it’s important to consider Amazon’s image; being known as an online book warehouse and with its predecessor Kindle being an e-reader, shifting consumers’ mindsets on its brand and focus may be challenging. Also, Apple is not its only worry; other companies, such as Barnes and Nobles Inc. and its “Nook Color” e-reader, are dueling on points of difference. Its low price may also pose a disaster due to a predicted negative contribution margin which Amazon hopes to cover through their online shopping for compatible services.
Entering the tablet market against the frontrunner iPad is a difficult task for any company; nonetheless, CEO Jeff Bezos and other analysts are confident that Amazon’s well-established online content along with its aggressive pricing will surely attract numerous consumers and increase their market share.


