August 30, 2011
Amazon May Sell 5 Million Tablets
According to Forrester Research, Amazon may be positioning itself to compete against Apple's iPad.
The iPad has significant market share, having already sold more than 30 million units since launching the product in April 2010.
Amazon currently sells the Kindle e-reader, which has no color display and has limited abilities in web browsing, email, and custom apps.
According to Forrester´s Sarah Rotman Epps, Amazon has to price its tablet below other competing products and rely on selling its subscription, and cloud services in order to recoup its profit.
Epps notes in her blog that having Amazon arrive as an Apple competitor will cause product strategists at Apple to prepare for war. She says the majority of Apple´s revenue still comes from hardware sales, which makes it vulnerable to a company, such as Amazon, that isn´t seeking profit from hardware but from content.
Epps also says the tablet will cause Android OEM´s to seek Amazon as a platform partner. She says, “We see potential for Amazon not only to launch its own hardware as an ℠Amazon tablet´ but also to be a platform for other OEM´s, layering Amazon´s software and services over Android to provide a richer customer richer experience.” She predicts “Amazon tablets” could be made by different hardware manufacturers.
Epps finally claims that software, media, retail, banks and others will scramble to build Android tablet apps. So far, product strategists across industries have invested in the development of iPad apps, Apple claims that there are 100,000 custom-built iPad apps, while Google´s Honeycomb, the tablet version of Android, claims fewer than 300 apps. Epps predicts with Amazon having the potential to sell in the millions of units, then software developers will jump on board, instead of taking their current wait and see approach.
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