Analysts are convinced that Wednesday’s Launch of the Amazon Tablet is a threat to the Apple iPad

September 28, 2011 by: 0

It has been generally accepted that the iPad is the gadget to beat in the technology stakes at the moment. Therefore the launch of the tablet by Amazon on Wednesday represents a significant rising of the stakes. In a technological sector that is driven by deadlines, the launch of a new item can have many significant implications. The people that are banking on retaining the top spot have to keep an eye out for all these eventualities that affect the popularity of their target brand. Amazon is making an entry into the tablet computer market which has been described as being volcanic by some experts. At just $250, this is a device that can deliver the goods and represents real problems for the Apple Brand which until now has enjoyed supremacy over the sector.

  • Manufacturers willing to go the distance: It has been reported that the company has already received orders from a group of Taiwanese manufacturers for the latest Apple iPads. The increase has been estimated at an increment of about 25% if we are to believe the information that is coming out of JP Morgan Chase. Bloomberg is of the view that this is a critical moment for both brands in terms of establishing a sustainable presence within the market. The Kindle had an aggressive pricing policy which will need to be replicated for new circumstances. This gadget was an e-book reader which had been associated with the largest internet retailer in the world.
  • The secrecy of Amazon: They seem to have learnt from the best and Amazon is doing everything in its power to ensure that the launch remains a mystery. Analysts such as Colin Gillis from BGC are able to come up with the right comparisons. According to the TechCrunch blog the new tablet will be known as the Kindle and will have a 7” screen. The full color touch facilities mean that it will compete very favorably on the market regardless of the competition which has been presented. By contrast the iPad looks like an expensive white elephant.
  • The basic sales and their implications: Apple is not a brand to be trifled with. They have already managed the feat of selling 29 million units of their ever popular iPads since the launch in 2010. Amazon on the other hand has experience of promoting different products including consumer electronics. If they can bring these two factors together then it is possible to create a very vibrant market indeed.

The price wars can only be good news for consumers who are always looking for a bargain. This is something that has not always been in abundance in these circles. Apple is also facing the challenge from Google. Some critics have claimed that the success of the brand might end up being the key to its downfall. Everyone wants to replicate the success of the iPad and hopefully even surpass it. The risk is that these new companies will be able to do the work of Apple much better than the brand was willing to commit.

Categories