Can the iPad 3 kill the Kindle Fire?
Apple's upcoming new tablet will be a potent weapon that can slow Amazon's newest Kindle.
Although Amazon's Kindle Fire fell short of the iPad in customer satisfaction in a recent market survey by ChangeWave Research, it scored higher than other non-Apple tablets, such as Research In Motion's (RIMM) PlayBook. Surveyed users said the most attractive feature was its low price of $199 -- less than half that of an entry-level iPad 2.
Apple investors should keep an eye on the Kindle Fire but don't need to worry too much about its impact on the stock price now. Our current $550 price estimate for Apple stocks is about 20% above the market price (see our complete analysis of Apple here).
Amazon could make up for losses
One interesting finding from the ChangeWave survey is that nearly 29% of Kindle Fire owners said they will spend more money on Amazon's platform over the next 90 days, compared with 19% of non-owners. This is good news for Amazon, which sells the Kindle Fire at a loss in hopes it will spur more purchases of books, movies and popular television shows from Amazon's platform.
iPad 3 could change this equation
According to a recent report from DigiTimes, Amazon is cutting orders of the Kindle Fire from suppliers by half to 3 million units in the first quarter. Amazon reportedly expects slower post-holiday sales and the forthcoming launch of the iPad 3 to slow down Kindle Fire sales.
We expect the iPad 3 will be a high-performance iPad with some attractive features, including the Siri voice-recognition service that became a hallmark of the iPhone 4S. The new iPad may also have a high-resolution screen and a faster processor. According to some reports, the iPad 3 may be released as soon as March and may support 4G LTE networks even before the iPhone does (see The next iPad could get 4G LTE before the iPhone).
All these factors make the next iPad a potent weapon for Apple and can impact Kindle Fire sales, which is why Amazon might have decided to cut Kindle Fire orders for this quarter.
they all do the same,,,they just have a different name~
Our family was looking at buying IPADS or Kindle Fires for this past Christmas. Everyone in our house already has a laptop and we have a PC that we share hooked to one of our printers. We did the research ahead of time about what we were looking for and why we were considering buying the IPAD and Kindle Fire. Our answer? Entertainment and Accessibility. What did we end up with? Our family bought 4 Kindle Fires, which we all love! It's smaller and more convenient for all of us to take when we travel (our family travels a lot). If we wanted something as large as an IPAD, we would all travel with our laptops. And, if we have to do any heavy duty work requiring office applications we take a laptop. Otherwise, we all love and travel with the Kindle Fire. My Mom was so happy she didn't have to buy 4 IPADS! The Kindle Fire is half the price and just as good, if not better! We'd recommend it to anyone!!
I am Happy with it It does everything I wanted to do for more then half the price.
WOW! Are you kidding? The iPad and the Kindle are not even the same type of device. An iPad is a full blown tablet device, while the Kindle Fire and the Nook Color are Readers. They do not have cameras and the cell phone connections are only in specific models. The Toshiba Thrive tablet and the Asus Tablet and things like that are comparable to the iPad. Please quit comparing apples and oranges.....
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