
Recently, Amazon launched a Kindle Fire, an e-book reader much cheaper but contains less functionality than I-Pad. Kindle Fire is a device allows people to read books, play simple games and play music. It does not have as much functionality as I-Pad but still is a good substitute product. According to critics from the link that I shared below, they put it in a different market as I-Pad.
However, I have a different opinion. Not supporting any gaming or utility functionality does not exclude one from the market that I-Pad is in. Critics even contradict themselves by saying that Kindle Fire has a potential to be like Nintendo Wii, which had soft start in the beginning but later on became one of the leaders in the gaming market, implying that Kindle Fire is in a same market as I-Pad. Two products have same point of parities, which are tablet, MP3 player and e-book functionality. Both Amazon and Apple have their own app stores where customers can purchase music and e-books. Point of difference for Kindle Fire is that it is cheaper. In next couple of months, unless Apple does something, Kindle Fire will gain significant market share.
Recently, Google announced that it acquired Motorola, once one of leaders in mobile phone market, for $12.5 billion dollars. 
