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jeff bezos
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bold statement
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tablet pc
Kindle Fire Is Makeing A Revolution In Tablet Computer Industry
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Kindle Fire is makeing a revolution in tablet computer industry

"Amazon Kindle Fire will be a success!" It is a bold statement by Jeff Bezos, the founder and C.E.O of Amazon, but can he substantiate his words? Despite the fact that the device is not yet on the market, I think that the argument is how true. The first day, when Kindle Fire was announced on the internet, Amazon picked up 95.000 pre-orders and more of them were flowing from minute to minute. Is this a revolution in tablet computer's industry or is it a downfall for Amazon?

Kindle Fire is not profitable for Amazon?

The producers took the tablet PC very seriously, which is shown by the fact, that for each order, Amazon loses ten dollars! Yes, they actually lose a profit when a buyer purchases a Kindle Fire. Analysts have calculated, that the components, deposited together with the production, cost a total of $209,63 which is higher than the selling price of the device, which is only 199 dollars. But why do they agree to something like that?

On one hand, by this low cost market move for the tablet, Amazon wants to stand up to their competition with a hope that a potential buyer will spent a lot of money on Amazon's digital content. For example, the Amazon Prime membership service, which is the annual subscription to all Amazon on-line store services, for just 79 dollars. And on the other hand, there is a whole new "ecosystem" behind the Kindle Fire tablet computer, that offers some exceptionally cool software, colors, pictures, Amazon Silk - perfected internet browsing program, movies, music, magazines and other. There has never been a tablet computer, that offers so much for such a low price and that is what Jeff Bezos is aiming for in his statement.

War of the Tablets

The price war against other tablet computers has started. Especially against Apple iPad. None the less, the latter is bigger in size and also has a camera, but the price is still two times larger than that of a Kindle Fire. By technical data, you can see there is almost no difference, except that iPad uses iOS system, while Kindle Fire has the Android operational system that is getting more and more popular.

Low Prices are Good

Kindle Fire is so cheap, that some of the competition has started to lower the prices of their tablet computers. For example BlackBerry, has dropped the price of their tablet computer PlayBook by almost a half (from 499 dollars to 299 dollars). How good is the Amazon's strategy with this low selling price, we will see after the 15th  of November, when the sellout starts in USA and then some months later, also in Europe and Asia. This will be a very interesting fight in computer tablet industry for sure, which is good for us consumers and people who have always wanted a tablet computer and couldn't afford it. And now when a lot of people could get an affordable tablet computer, I think this will be a start of a revolution in tablet computer industry, caused by Amazon's Kindle Fire.


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