Monday 24 October 2011

Threat of Kindle Fire on iPad

The official release date of kindle fire would be 15 Nov. This device costs only 40% of the cost of an iPad. Amazon has a 10$ loss on each device they sell, they except to use subsidize product adoption strategy to occupy the market. Amazon expect to earn this loss back by selling more e-products. Amazon officials forecast they could sell 5M devices in Q4. If it was true, and Apple's iPad sell has been impacted, it would be a good news for Apple fans. The competition will always be with customers. If the sales of iPad declined in Q4, then Apple will definitely drop the price of iPad. CNET estimate each iPad has a production cost at 330$. Apple had to give a huge jump in response of Kindle Fire at March 2012. So far, Tim Cook do not consider Amazon as a viable competitor for Apple, but who knows what is going to happens since the price of new kindle is so attractive.


Ref:
http://news.cnet.com/8301-13924_3-20120294-64/kindle-fire-forecast-bumped-to-5m-units-in-q4/
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/17/bloomberg_articlesLT7PXA0YHQ0X.DTL

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