Kindle Fire Will “Vaporize” Android Tablets, But Be Gateway Drug To iPad



Amazon’s Kindle Fire could be the gateway drug for iPad users. That’s the belief of one analyst who sees the $199 7-inch device as a way for consumers to get a taste for tablets and want more — like the iPad.

“If anything, we think Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market,” J.P. Morgan analyst Mark Moskowitz writes. Although reviewers have panned the Kindle Fire as being underpowered and not up to the iPad’s performance, that very lack could consumers to “gravitate to more feature-rich experiences,” Moskowitz adds. In other words, the Kindle Fire could be used as an iPad with training wheels.

Despite all the talk that the Kindle Fire could become the No. 2 tablet, not many people are worried in Cupertino. There’s “not much concern in tablet town,” the analyst says.

Echoing that opinion, Evercore Partners’ Robert Cihra writes today Amazon will “vaporize” all Android tablets that are selling for a profit. Although the Kindle Fire is a credible challenge to the iPad, its success comes from selling the tablet at cost. Cihra estimates Amazon will have 50 percent of the Android tablet market in 2012.

Meanwhile, Apple continues to flatten the competition, skimming the cream from each. First, Apple decimated the PC business, sending rivals into a tailspin of cheap computers while selling boatloads of iMacs and MacBooks. Then the iPhone turned the smartphone market upside down, derailing longtime leaders. The iPad is just the latest example.

  • John Mozelewski

    It’ll most likely lead other companies to making cheaper tablets like the fire.  I love my ipad but 7 inches and 10 inches are two different things. you can carry a 7inch tablet anywhere with you. There not really the same type of device.

  • FriarNurgle

    It’s all about infrastructure. Apple has got  it… and Amazon has ti also. Google should have kept Android in a walled garden and produced and branded the hardware themselves.   

  • malipeter32

    This also means that if Apple creates a 7-inch iPad, the Fire will be extinguished.

  • Jordan Clay

    Doubt it,  IF a 7″ iPad comes out, it will probably be priced at the $350-400 price point.  Amazon is making most of it’s profits on content sold.  Apple is making it’s profit on the device (and a little  on content sold)

  • Jordan Clay

    I know, i’ve been telling people this all along.  It is just really hard to understand till you actually pick up and use each device.

    Everybody just sees that they look the same, except for a slightly smaller screen. But it isn’t the case.

  • malipeter32

    $150 more for a better quality product and more apps to choose from, I think customers would prefer Apple … guess we’ll just have to wait and see.

  • malipeter32

    There’s definitely different categories of consumers for 7″ and 10″, and even larger sizes.  I’d love to see Apple covering all those categories eventually.  I would personally like to have a laptop screen size of the iPad so I can optionally carry a device without a keyboard when I want to.

  • 300AShareMakesMeSmile

    Apple will never come close to satisfying the bottom-feeding cheapskate who just wants the least expensive device even if the build quality is poor.  I know people that wouldn’t want to pay $5 more for an item because the bargain price is everything.  They sort of live in a world where nothing is worth spending extra on.

    They’ll get the minimum cost auto insurance and the minimum cost home insurance because it’s just good enough.  It doesn’t make an awful lot of sense to me, but hey, everybody has a different outlook on spending.  For $199 the Kindle Fire appears to be a serious compromise in quality, but only time will tell if I’m completely wrong and the Fire will work fine for a year or two.

  • madaroda

    Ooh ooh. Can I be an analyst? I can say things like:

    A moped is a way for people to get a taste of what it’s like to get from one point to another and want more — like a Hummer.

    Safeway is a way for people to get a taste of grocery shopping and want more — like Whole Foods.

    Cricket is a way for people to get a taste of hitting a ball with a stick and want more — like baseball.

    A Boeing 727 is a way for people to get a taste for flying and want more — like the 767.

    An iPod is a way for people to get a taste for what it’s like to take their music with them and want more — like a ghetto blaster.

    Rock and roll is a way for people to get a taste for music and want more — like Miles Davis.

    See? I can be an analyst too and get quoted on Cult of Mac. I just did.  

  • Jackson

    Close, Ed, but no ceegar. The Fire is a Gateway Drug to the 10″ Amazon tablet coming out next year. Once again there will be two camps:  Apple and Amazon. Each will have bizzlions of apps of which only a couple of hundred are worth paying for. You have to love free enterprise when it works. And Google continues as the also-ran search engine.

  • Roger Ramshit

    Android is becoming Googles poisoned chalice. Ironic if Amazon closes Google out of its own product.

  • Gordon Terry

    Props to the author for the Ninth Gate reference 

    Love that movie

  • Mark Croston

    Nice photo of Swinton Park, thought it looked familiar :-)