Why are vendors all scared of the Amazon Kindle Fire?

Why are vendors all scared of the Amazon Kindle Fire?

So the word on the street is that PC vendors like Hewlett-Packard (HP) and Dell reportedly plan to venture into the development of Microsoft’s Windows 8-based tablet PCs with the new models likely to be launched in the third quarter of 2012.

Here’s the funny part. It seems that Windows 8 is now ironically more attractive to these vendors because of Amazon’s new slate device – The Kindle Fire.

You know what? They’re damn right.

For most vendors, the $199 and sub $199 space is spoken for.

It has officially become fools gold to try and go after that space because Amazon will rule it.

Like I have said before, the $500 and above space is spoken for as well. Apple have planted the flag with the Ipad and really arent moving anywhere any time soon.

So what next? Well.. there’s the space inbetween i.e. the space between $200 to $499.

That seems to be the sweet spot where Windows 8 will occupy and quite frankly, it’s not a bad space to be in.

Funny, even when I gave site visitors a chance to set their price for Windows 8 tablets, that was the space that won.

There are two major caveats that should make the Samsungs and Motorolas and Microsofts of the world lose sleep.

  1. Apple decide to manufacture a baby Ipad in the $200 to $499 space.
  2. Amazon decide to manufacture a premium Kindle Fire HD in the $200 to $499 space.

That would be a severe blow to Windows 8 in general as it would further muddy the waters in the tablet space.

Like I always say, the consumer wins either way…

🙂

 

  • Penta2100

    I don’t think the kindel fire is that nice… It is a good price thoug but people would think that they are buying something cheap and not worth it. Im glad that microsoft is left with the 200 – 499 range. That way people won’t put a great OS in a poopy case with poopy hardware.

  • Julius Malco

    Great article. While I agree with you that price range would be ideal, what kind of performance are we going to expect at that price?

    At the moment, the Microsoft Store has tablets with the high end at over $1000. I don’t think the average consumer is going to spring for a device at that price.. not to mention the battery life.

    I guess it might be too much to ask for premium performance at a reasonable price!

  • Owais_503

    y couldnt everything in this world be free.

  • ECM2

    The problem – is every time a new version of iPad and Android tablets come out, the previous  iPad and Android versions do not go away. They remain as cheaper options to consumers at a price of $200-$499 – the range you said is the “sweet spot” for W8 tablets. If it were me I would get a W8 tablet for say $350 in a heartbeat (versus say iPad2/Android honeycomb).  If  the iPad2 price is $200-$250, I might consider it over a 
    $350-$400 W8 tablet, although most likely I will end up getting W8 (if I listen to my Windows “conscience”).  But the real problem for W8 tablet is not the iPad but the Android tablets which, as we all know, come in so many flavors – hey they didn’t come up with all those dessert names for nothing – and so many price options.  That’s why I think that Microsoft is going to have a very hard time if Windows tablets occupy 
    only one niche or one sweet spot.  A practical solution is to release WP7 tablets as well to compete in other niches and other territories.