Amazon launched kindle Fire HD, aggressive price to capture market

On 10 Sep 2012 by in Category Article

Amazon has unveiled larger, faster, aggressively-priced Kindle Fire tablets on Thursday, challenging Apple dominated tablet (iPad) market. Giving some tough competition to Google and Microsoft, in the booming tablet arena.

Amazon stepped into this market nearly about a year ago with kindle 7 inch tablet priced at half of the iPad. In the coming month on 20thof Nov Amazon will be bouncing back into market with more aggressively priced , competitively acumen device Kindle Fire HD, 8.9’-inch device starts at $299 for Wifi and 16GB Hard disk. Apple iPad 2 with Wifi and 16GB storage cost $399.

Amazon Chief Executive Jeff Bezos took the stage to unveil two 8.9-inch versions of the Kindle Fire HD. He said Amazon saw the Kindle family of e-readers and tablets as a service, with hardware critical to its digital content business.

The Kindle 4G Fire HD model, with 32GB, costs $499, while the apple iPad 4G device with 64GB has a $599 price tag. The latest WiFi-only, 32GB iPad costs $599 and the top-end iPad with 3G and 64GB of storage costs $829.

Amazon’s two 7-inch tablets will also be costing alot less. The updated Kindle Fire will be $159 and a Kindle Fire HD version is $199 beating the competition hands down.

With 1920 by 1200 screen resolution the Kindle Fire HD is lagging Apple’s so-called “retina” display. At 8.9 inches, it is also smaller than the iPad’s screen. However with HD as standard display it is set to thrill the market with aggressive pricing.

Amazon has a strong presence in the market as big retail brand and cashing on its image of high quality of service delivery it is trying to put its hand into the growing and high potential market of tablets.

Tablets have become the global phenomena and market and users have responded positive to even the new brands coming to the market with aggressive pricing. Amazon being a brand and set image is set to gain an advantage this time with kindle Fire HD.

 

This will only going to help them later selling high margin digital content to its users, on way or the other Amazon is trying to capture the market with Aggressively priced kindle Fire HD, along with retaining the market and share of its E-readers.

Shares in Amazon closed on Nasdaq up 2.1 percent at $251.38, after hitting an all-time high of $252.70 during the session.

It will be interesting to see how this could affect the brand loyalty, well Amazon does have its share but some does Apple with its followers lining up every time before its release of new i- series phones and tablets.

However market analysts have predicated this could bring the prices of tablets to come down of their existing values. Forcing strong sense of competition into tablet market would certainly benefits the consumer.