Wednesday, September 28, 2011

Amazon Unveils 'Fire' Tablet, Kindle Taking tab on Apple's iPad



Amazon.com unveiled its most-awaited tablet computer Kindle Wednesday with the price tag of  $199  and Kindle 'Touch,' an e-reader with a touch screen, starts at $99 the tag is cheap enough to give Apple's iPad a tough competition for the first time.

At a press conference in New York, Amazon launched the Kindle Fire, a tablet with a seven-inch nice screen, free data storage in the cloud and a new Internet browser called Amazon Silk. Shipments for the Fire will start Nov. 15.

Amazon CEO Jeff Bezos also released the Kindle Touch, an e-reader with no buttons and a touch screen starting at $99, along with one with cellular network access that will cost $149 and a basic Kindle e-reader at a new price of $79.

"We've now reached the magical two-digit price point for Kindle-twice: the new Kindle and Kindle Touch are only $79 and $99. Kindle Touch 3G is the new top of the line e-reader with free 3G—no monthly fees or annual contracts—and is only $149," Bezos said. "Kindle Fire brings together all of the things we've been working on at Amazon for over 15 years into a single, fully-integrated service for customers."
"These are premium products at no premium prices," Bezos said. "We are going to sell millions of these."
Experts expected the tablet to be priced around $250, roughly half the price of Apple’s dominant iPad, which starts at $499. The Nook Color e-reader costs $249.

Having its own tablet is important for Amazon because the company has amassed a mountain of digital goods and services that could be sold through such a device.

As the world's largest Internet retailer, a tablet might also encourage Amazon customers to shop online for physical products more often.

Breaking into the tablet market will be difficult. Companies including Hewlett Packard , Motorola Mobility, Samsung and Research in Motion Unavailable have each launched tablets but none have taken a bite out of Apple's lead.

Apple dominates the North American tablet market, with 80 percent of the 7.5 million units shipped during the second quarter of 2011, according to Strategy Analytics. Many have tried to copy its success, but so far, the iPad is the only really successful product in the tablet market. Apple sold 28.7 million of them from April 2010 to June 2011.

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