Posts tagged ‘Kindle’

July 28, 2012

Amazon phone!?


Amazon is rumored as extending its reach into the mobile market. Bloomberg reported that Amazon is working on a phone rumored to run on Google’s Android OS, along with Foxconn, manufacturer of Apple’s iPhone.  Further Amazon is supposed to be seeking patent acquisitions to complement its entry into the smartphone market and defend itself from patent trolls. 

Amazon has positioned itself to enter the smartphone market with its entry into the tablet foray with Kindle Fire. Kindle Fire has become the second best selling tablet after the iPad (based on speculated sales numbers of the Amazon Kindle tablet). With Amazon prime, cloud and app store, Amazon is more than ready to enter the phone business. One would expect Amazon to follow its aggressive Kindle pricing on its new smart phone as well. With other major brands like Samsung, HTC, Motorola dominating the low price point phone market, it would be hard for Amazon to gain a market share there. It may, however, try to score in the higher price point space – iPhone’s arena, but, in my opinion, Amazon lacks the expensive brand value that Apple portrays. 

Amazon could bundle 4G data services with the phone. Some analysts suggest that Amazon might charge $249 for the handset bundled with six months of 4G LTE data. The ultimate game plan that we all know Amazon will go after is to sell its  phone at an extraordinarily low price and blow through its inventory by bundling free two day shipping (Amazon Prime), beat Netflix at its own game (again Amazon Prime!), sell apps (via Amazon App Store) and its other software services. 

I dont think Amazon phone is a viable option to the Apple iPhone, but it definitely would be strong enough to fight the low price market segment. Selling the device at little or no margin is most probably the path Amazon will follow, but I would be excited to watch Amazon approach an entirely different model. 


September 5, 2011

Cheapest Tablets and Deals


If you missed out on HP’s blow out $99 sale for the Touch Pad, nothing to fret! Touch Pad is making a come back one last time (or so HP claims. After all their wishy washy announcements, I wouldn’t be surprised if they announce the resurrection of WebOS soon after). We don’t know how much HP would price the next round of tablets, but let’s hope it’s close to that smashing $99 price range.Here are some other options if you don’t really care for the OS.

RIM announced a $50 discount on Play Book for the Labor day weekend at Best Buy. A 16GB Play Book would cost $449.99 at a $50 discount. Not a huge deal, but clearly Playbooks are not selling.

Amazon’s yet to be released Amazon Kindle running Android with Amazon Cloud Player and Amazon App Store is expected to be priced at $250. I would be interested to see the market dynamics when this one comes out.

The low priced entrants in the Indian tablet market will undercut almost all tablets in the US. Reliance’s 3G Tab at $285, Bharti’s Beetle Magiq at $220, LACS’s $99 tablets and the best priced of all is OLPC’s $35 tablet.

All in all, small gross margins, stiff competition and a lot of blood shed to come.

I can’t end a blog without talking about Apple, right? 🙂 Apple iPad 2s are starting to peek into the refurbished inventory. Currently, they have the fully loaded 3G AT&T and Verizon iPad 2 at $779 after having shed $50 from its original $829.



Right now Verizon is running a pretty sweet deal on certified pre-owned Motorola XOOM and Samsung Galaxy Tab. With a 2 yr contract you can get the XOOM for $299.99 and the Tab for just $69.99.

For just $100 more compared to the discounted XOOM price, you can get an Acer Iconia or the Asus Eee Pad Transformer for $399. Not willing to spend that much, get  a Dell Streak 7 for $279, although you won’t get Honeycomb on that :P.

There’s a lot of good tablets out there. If you’re looking for one hopefully you end up on this side of the fence instead of Apple’s 😉

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