Amazon May Become World's Second Largest Supplier of Media Tablets

Amazon May Develop into Apple iPad's Main Rival

by Anton Shilov
08/29/2011 | 11:48 PM

At present Amazon is well-known for its Kindle electronic book reader, but in several months time the company may become the largest supplier of media tablets after Apple, an analyst believes. However, in order to be successful, Amazon will have to offer its tablets at affordable price-points.

 

According to Forrester Research analyst Sarah Rotman Epps, Amazon's tablet, if it is launched at the right price with enough supply, can be easily sold in 3 million to 5 million units in Q4 alone, disrupting not only Apple's product strategy but other tablet manufacturers' as well. Amazon itself plans to sell around four million tablets this year, according to unofficial information.

"Apple will maintain a strong lead in market share, but Amazon will gain ground quickly and give product strategists from media, software, retail, banking, and other firms a reason to kick app development for Android tablets into high gear," said Ms. Rotman Epps.

The media tablet(s) by Amazon are projected to be based on Nvidia Tegra 2 system-on-chip. Among suppliers of other components are Wintek, CPT, J Touch, Ili Technologies, Novatek, Capella, Sitronix and Richtek. As reported, the device will be based on Google Android.

The introduction of Google Android-based tablet by Amazon clearly means that the company not only follows its competitor Barnes & Noble, which released its Android-based Nook Color electronic-book reader last year, but plans to compete against Apple iPad, Motorola Xoom, Samsung Galaxy Tab and other popular slates.

It should be noted that the introduction of a tablet will inevitably slowdown sales of Amazon Kindle, which is, according to the company, the best selling device at Amazon.com ever. The company will have to clearly separate Kindle e-book reader and tablet in terms of price and services in order to maximize sales.

Selling four million tablets in calendar 2011 is a very optimistic plan given limited success of other Android-based tablets as well as massive popularity of Apple iPad. If such a plan exists, then it is probable that Amazon not only has strong ideas how to promote the device, but also intends to set rather aggressive pricing and launch a massive advertising campaign.

Amazon did not comment on the news-story.