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Apple says Kindle Fire is actually good for them

Posted: , by Victor H.

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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:

“While the pricing at $199 looks disruptive for what seems to be the iPad’s most important rising challenge, the Amazon Fire – it is important to note that it could fuel further fragmentation in the tablet market—given it represents yet another platform. While compatible with Android, the Apps work with Amazon products. The more fragmentation, the better, says Apple, since that could drive more consumers to the stable Apple platform. We believe that Apple will get more aggressive on price with the iPad eventually but not compromise the product quality and experience.”

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

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posted on 03 Nov 2011, 10:40 12

1. quakan (Posts: 1396; Member since: 02 Mar 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.

posted on 03 Nov 2011, 10:53 10

2. djg71087 (Posts: 70; Member since: 10 Oct 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.

posted on 03 Nov 2011, 11:33 1

6. shafboy (Posts: 179; Member since: 26 Sep 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.

posted on 03 Nov 2011, 12:09 4

7. superguy (Posts: 299; Member since: 15 Jul 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.

posted on 04 Nov 2011, 16:52

22. ZEUS.the.thunder.god (unregistered)

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

posted on 03 Nov 2011, 11:09 6

3. andro. (Posts: 1999; Member since: 16 Sep 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

posted on 03 Nov 2011, 11:27 2

5. The_Miz (Posts: 1496; Member since: 06 Apr 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.

posted on 03 Nov 2011, 12:10 1

8. superguy (Posts: 299; Member since: 15 Jul 2011)

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

posted on 03 Nov 2011, 14:03 1

12. The_Miz (Posts: 1496; Member since: 06 Apr 2011)

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

posted on 03 Nov 2011, 14:48 3

13. superguy (Posts: 299; Member since: 15 Jul 2011)

Please show me where I said that.

posted on 04 Nov 2011, 14:37 1

19. superguy (Posts: 299; Member since: 15 Jul 2011)

I'm still waiting, Miz.

posted on 04 Nov 2011, 16:53 1

23. ZEUS.the.thunder.god (unregistered)

go n tell ur opinion to ur mama lol

posted on 03 Nov 2011, 11:15 1

4. cncrim (Posts: 899; Member since: 15 Aug 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.

posted on 04 Nov 2011, 00:05

16. denney (Posts: 98; Member since: 20 Oct 2011)

slowly going the way of The_Miz...

posted on 03 Nov 2011, 12:41

10. ibap (Posts: 780; Member since: 09 Sep 2009)

What would you expect them to say?

posted on 03 Nov 2011, 13:04

11. Paden (Posts: 262; Member since: 07 Jul 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?

posted on 03 Nov 2011, 22:07

15. networkdood (Posts: 6330; Member since: 31 Mar 2010)

79/year...I believe

posted on 03 Nov 2011, 21:37 1

14. xtremesv (Posts: 298; Member since: 21 Oct 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.

posted on 04 Nov 2011, 00:24

18. ardent1 (Posts: 2000; Member since: 16 Apr 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.

posted on 04 Nov 2011, 14:40

20. superguy (Posts: 299; Member since: 15 Jul 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.

posted on 04 Nov 2011, 00:22

17. ardent1 (Posts: 2000; Member since: 16 Apr 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.

posted on 04 Nov 2011, 14:43

21. superguy (Posts: 299; Member since: 15 Jul 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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