Apple says Kindle Fire is actually good for them

Apple says Kindle Fire is actually good for them
When the Amazon Kindle Fire was announced a couple of weeks ago carrying a price tag of only $200, for the first time we thought that the iPad really has gotten some competition. 

The Kindle Fire is smaller at 7 inches, but offers a dual-core processor and a heavily modified Android that make it desirable. 

Now, you might expect Apple to be challenged, but CFO Peter Oppenheimer actually said the Fire was good for the iPad. How come? Here's what Barclays published based on an interview with Oppenheimer:

Now, that seems a bit arrogant of Apple, doesn't it? Could it be that the company is being pre-emptively defensive about what could actually turn out to be its main tablet competitor? We leave up to you the decision, but while it's obvious that Fire is very different than other Android tablets in terms of the UI, we find it hard to believe that this one Android could actually be bringing instability to Android.

There's one thing about the Kindle Fire, though. We have been somewhat blindly speaking about it as Amazon hasn't allowed the press to actually work with the device, and that brings concerns about possibly flawed responsiveness and who knows what else. Hopefully, Amazon will straighten all those rough edges (if they exist) prior to the November 15th launch, and from there on, the numbers will tell their tale.

source: Barclays via Business Insider

Related phones

Kindle Fire
  • Display 7.0" 1024 x 600 pixels
  • Processor TI OMAP4, Dual-core, 1000 MHz
  • Storage 8 GB



1. quakan

Posts: 1418; Member since: Mar 02, 2011

No one is buying the kindle for the android name, they want it because its an Amazon Kindle. Primarily buyers want it for reading and possibly for music listening, some apps, and some games. Fragmentation won't matter here.

2. djg71087

Posts: 70; Member since: Oct 10, 2010

i agree... i am one that preordered this device. price point will have a lot to do with the success of this device, plus i like the UI, seems very simple.

6. shafboy

Posts: 179; Member since: Sep 26, 2010

Apple is really successful because of one thing other manufacturers have failed to. Well Windows Phone isn't doing it bad either but that's not the point. Apple isn't going to make their iPhone cheap not because of high profit per unit, but because they want their customers to have the best user experience they can. This is why they are doing really good.

7. superguy

Posts: 448; Member since: Jul 15, 2011

So you have to pay a lot to have a good user experience? That doesn't make any sense. Apple charges more because they have brand recognition, a sense of coolness, and because they can. If Amazon can pull of a great user experience at $199, Apple has a problem. I think they have a good shot at doing so. Apple won't lower its prices until they start losing sales to the competition. Cost has little to do with user experience. Paying more doesn't guarantee a better experience.

22. ZEUS.the.thunder.god unregistered

best user experience ??? on a 3.5 inchs display ??? lol you r really funny

3. andro.

Posts: 1999; Member since: Sep 16, 2011

Apple is really worried as this is yet another competitor which rivals and again possibly even betters their product but for a fraction of the price but this time they will have very little if no grounds on which to try and sue relentlessly to hide these factors. Instead this defensive approach is the first sign of apples anger

5. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Rivals and competes, maybe so. And with a nice price factor to over the other overpriced Android tablets. But better? Not even remotely close in my honest opinion.

8. superguy

Posts: 448; Member since: Jul 15, 2011

And you can make this judgment because you've used both the Fire and the iPad? Or is this just another iFan opinion?

12. The_Miz

Posts: 1496; Member since: Apr 06, 2011

I could ask you the same thing for being one of the ones to agree that it's better than the iPad.

13. superguy

Posts: 448; Member since: Jul 15, 2011

Please show me where I said that.

19. superguy

Posts: 448; Member since: Jul 15, 2011

I'm still waiting, Miz.

23. ZEUS.the.thunder.god unregistered

go n tell ur opinion to ur mama lol

4. cncrim

Posts: 1586; Member since: Aug 15, 2011

$400 diffirence between Kindle and ipad..... I don't think fragmentation will be matter. Whoever make comment apple will benifit out this they are obviosly crazy, only time will prove them wrong.

16. denney

Posts: 98; Member since: Oct 20, 2011

slowly going the way of The_Miz...

10. ibap

Posts: 867; Member since: Sep 09, 2009

What would you expect them to say?

11. Paden

Posts: 262; Member since: Jul 07, 2011

I'm actually kind of excited to see how this goes. I'm a fan of the Kindle line. Hopefully it works as expected... I'm not thrilled about the 7" screen, but the price is right! Anyone know how much Amazon Prime subscriptions are?

15. networkdood

Posts: 6330; Member since: Mar 31, 2010

79/year...I believe

14. xtremesv

Posts: 299; Member since: Oct 21, 2011

Isn't Apple getting this dejà-vu? Are they blind? Fragmentation didn't prevent Windows from becoming the number one desktop OS in the world and certainly won't stop Android either.

18. ardent1

Posts: 2000; Member since: Apr 16, 2011

That is why the OEMs aren't make their required rate of return with Windows. The only company who made the killing was MicroSoft from a ROIC perspective. IBM left the PC business, Compac was acquired, etc. You get the hint.

20. superguy

Posts: 448; Member since: Jul 15, 2011

The openness is what made computers ubiquitous and affordable. Take the PC marketshare and compare it with Apple's 6-7% marketshare. Back in the day, PCs were quite profitable. Now they're just a commodity. Had we stuck with IBM's and Apple's model of being closed and proprietary, we wouldn't have PCs and other devices like we do now.

17. ardent1

Posts: 2000; Member since: Apr 16, 2011

You can currently get an refurished iPad with 64GB Wifi for $399. Apple had been offering refurbished iPads for as little as $299. If Apple wanted to sell the iPad for $350, it could do so. This is a point missed by Amazon.

21. superguy

Posts: 448; Member since: Jul 15, 2011

Sure it could. But if there are tons of suckers willing to pay $499-699 depending on model, I wouldn't lower my prices either unless a competitor forced me too. Android tablets have largely been overpriced for what they offer. There hasn't been a killer app or compelling reason to buy one over Apple outside of preference. With Amazon getting into the fray, providing a strong experience at a significantly lower price, it'll be interesting to see what happens and how Apple reacts.

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