Amazon appears confident about its rumored tablet’s chances against the iPad. In fact, the Kindle maker has ordered several million 10-inch units for the entire 2011 year.
The online retail giant has begun what Canaccord Genuity chip analyst Bobby Burleson calls a “strong build,” ordering more than 1.5 million units for the current three-month period and possibly as high as 5 million devices for all of tis year.
The hefty orders appear to contradict recent concerns suppliers may be too busy fulfilling Apple’s devices to deal with any rival products. Touch panel supplier TPK was said to be “reluctant to make a commitment to supplying touch panels to Amazon,” industry publication DigTimes had reported. Amazon is shooting for introducing its tablet in September, during the all-important back-to-school period, according to reports.
However Burleson sees touch panel supplier Atmel and Tegra processor maker Nvidia as benefitting from the Amazon orders.
In a related development, the advent of tablets are causing consumers to choose between an iPad-like device or a laptop. “Simply put, with tablets, consumers are asking themselves ‘what device should I purchase?’,” said Credit Suisse analyst Thompson Wu Wednesday. “We believe this has translated into some cannibalization.”
At last count, Apple has sold more than 2.6 million iPad 2, indicating Amazon foresees significant demand for its Android-powered alternative. Is Amazon right in its confidence? Let us know.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
30 responses to “Amazon Will Challenge iPad With 5M Kindle Tablets In 2011”
Since I have a Kindle and I love it…
I might buy a Kindle Tablet.Â
long story short, no. No android tablet has been able to compete with the iPad, why would a Kindle tablet running Android be any different? The only iPad killer was the iPad 2. And the only iPad 2 killer will be the iPad 3. Plain and simple. Sorry, but that thing looks exactly like a Galaxy Tab running the Kindle app. Pathetic.
eInk is pretty cool for reading outdoors but I’d rather see it come to an iPad because I’ll never buy a Kindle.
-Chris
http://friendsofmac.net
The next big thing will be the MacBook Air… poor Amazon…
I can see Amazon doing well. They have a content eco-system already. Music, Movies and Television, Books, Periodicals and now Apps. These are things others don’t really have. Samsung has parts but not a complete set. The others rely on the web and third-parties. It isn’t as click and go as people envision and in turn it leaves them feeling like they should have gotten an iPad.
Amazon’s Kindle sales are another bonus because many will see this as an upgrade.
Amazon has several things that Samsung and Android tablet makers do not:
1) An existing base of millions of Kindle ebook users whose natural upgrade path will be to a Kindle tablet. Perhaps the Kindle tablet will have a non-reflective screen or other special measures that allow it to be used outdoors.
2) An existing base of millions of account holders with their credit cards on file.
3) An existing ecosystem that includes music, video, periodicals, books, and an app store. And Amazon Prime members get free unlimited video streaming.
4) An ability for great cross-promotions, like when they made Kindles the gold box deal. Or put an Amazon store app on the Kindle tablet and make everything x% off when you shop through it. Or a subsidized, inexpensive Kindle tablet that displays ads for products sold through Amazon. Or free Amazon Prime membership for a year if you buy a Kindle tablet.
I don’t think a Kindle tablet would “kill” the iPad, but I think it could be the first to truly compete at decent level.
I am actually kind of curious just how much of that existing user base is using dedicated Kindle hardware. What are we up to? Over 20 million iPads in total? However many million iPhones and a rather substantial number of other smartphones, all of which can run the Kindle app. Not to mention rival Android tabs and the apps for PC and Mac. This cross platform compatibility, whilst being one of their main strengths imho (and the main reason I favour them over iBooks), makes an Amazon branded tablet rather less of a natural upgrade path. I strongly suspect that in terms of hardware, many of their existing user base have already shacked up with their rivals. Unless they start making more of their content exclusive, I cannot see them really standing out from the crowd. But without the installed user base of Apple and others, can they really afford to do this?
I can’t see why anyone would want to buy a Kindle tablet, other than the Amazon music and app stores, which are available on all Android devices (I think) anyway. The whole point of a Kindle was that it would use an e-ink display to be suitable for reading with, wasn’t it? So why change that? I can’t really see this succeeding really… although I am surprised about the 2.6 million iPad 2 figure, I thought it would be higher than that.
What do you mean “poor” Amazon. Amazon stock has been smacking Apple stock silly the whole year. Amazon could easily walk in with a somewhat decent Android Honeycomb tablet, sell about 2 million units with included media and boost its share price another 50% and Apple couldn’t do a darn thing about it. Wall Street doesn’t have nearly the expectations of Amazon that Apple has. Everything that Amazon does is perceived as good. Just competing would be enough. Anything that Amazon does will derive higher Wall Street value than what Apple does.
Sorry, but Amazon is far from poor. Amazon will go into anything because Bezos doesn’t care whose toes he’s stepping on. Shareholders like that. Apple is slowly doing things according to some covert plan that nobody can even fathom and that’s why there’s a constant question mark behind such a powerful company.
This is really accurate. Â I made the choice to buy a Kindle (instead of an iPad) based on three things 1) Price 2) Free 3G 3) e-ink. Â I imagine the only advantage the Kindle device will have no over the iPad is price… but then it becomes a side by side comaprison, and the Kindle loses to iPad without eInk and free WhisperNet 3G
I LOVE my kindle, but if they get rid of the free 3G on the Tablet, I would just get an iPad instead.
I think Amazon can do tremendously well. They already have an app store, dedicated user base, plenty of money, and have shown they can move products. Also, I think they ‘get it.’ I think they have a vision for the tablet space and can execute it well.Â
Sounds like Woot’s gotta whole lotta inventory comin’ !!!
I’m going on the record and betting my pants that the AMpad is goingto rock in terms or both numbers and speed of uptake. Â All theimportant things they need to allow it to be a successful product arein place.
1. ecosystem. A merging of the Android mkt place and the Amazon mktplace makes for a Big shop. A very big shop.
2. They have had time on their side. They haven’t rushed into themaket like all the other tablet makers in a paranoid frenzy. They havewatched, learnt and planned. Planning makes perfect. This will allowthem to come online with a very good, complete product that feelsfinished and offers the users something attractive.
3. They have a user base that will be willing to adopt their vision ofthe tablet because they loved their vision of the e-ink reader. Thisgood will factor will give them the kind of leverage that nobodyexcept google would have in the android tablet market.
4. They will make android look like a good choice because they willmake the offering look more like the unified approach offered by theiPad. This more focused sell will let people see what their tablet isall about. There will be less ‘spec wanking’ and more Lifestyling.
5. The marketing will be huge, simple and visible. On all amazon sitesthe world over – thats a lot of people seeing a well controlledadvertising push before you even get to channels like tv. Kindle waswell marketed and easily understood. They’ll bring the same approachto the AMpad and it will set tongues wagging.
There is not one single brand out there aside from apple that offersall the things you need to make a real go of tablets aside fromamazon. Â Google could but they know it would piss off manufacturers.The Sony of old would have but those days are long gone and all theother brands just don’t have the brand power and Market penetrationthat amazon has as a brand.
tablets are all about their ecosystems. which is why tablets from Motorola, Samsung et al have flopped so far. those OEM’s have little/no ecosystem. so their tablets are just gadgets. Amazon does have its media store, and Sony has some of that plus its game platforms. so at least they have a better starting point, IF they can set it all up seamlessly via Android. MS has a huge potential ecosystem, but just can’t get its tablet sh*t together – like selling a focused XBox tablet. it is so hung up on Windows.
Apple tho is rapidly interweaving all its extensive hardware/software ecosystem components together seamlessly, and adding much more. that is the real story of this year’s Lion, iOS 5 and iCloud launches. you will be able to “Applize” your entire home and much of your outside life, and it will all Just Work.
but you won’t be able to Amazonize your life (unless shopping IS your life). in theory you might Sony-ize your life with all its consumer hardware. but Sony does not grasp the concept of Just Works – it’s always bells and whistles overkill with a clumsy UI – and its dependence on Windows for anything desktop is just one big complication too many.
both Amazon and Sony are coming out with Android tablets soon. if they are good hardware with well done custom Amazon and Sony skins or whatever, they should sell better than other OEM’s  Android tablets have so far, because they have at least some ecosystem. but not that much better, because their ecosystems are still very limited. while with all the neat new Apple stuff coming in the Fall, iPad sales will zoom for the holidays.