updated 06:40 am EDT, Tue October 4, 2011
Amazon on fire with Kindle Android tablet
Amazon is unofficially estimated by eMailDataSource to have already taken over 100,000 pre-orders for its Kindle Fire. The seven-inch, heavily customized, Android-based tablet went up for pre-order on Monday and reached that figure by the end of its first day on sale. Compared to other tablet launches the figure is significant although it still trails the original iPad, which took 300,000 orders on its first day on sale for pre-order.
The Kindle Fire, announced last week, is considered by many to be the first serious challenger to the dominance of Apple's iPad. Although lacking in several key features to keep its cost down, including cameras, the device is predicted to be a hit as it ties in closely with Amazon's extensive rich media content delivery platform. Its entry price of $199 also makes it an attractive alternative for many people who can't, or don't want to, stretch their budget to reach the over $500 asking price for an iPad.
Amazon has been able to accomplish its low price, where others to date haven't, because it is gambling that it can take a loss up front though make up for this by selling content to Kindle Fire users. It is estimated that Amazon could be losing anywhere between $10 and $50 for each Kindle Fire it sells based on the raw cost of each component.
However, the strategy may not necessarily work as numerous studies have shown that Android users are less likely that iOS users to purchase content online. If Kindle Fire buyers are simply interested in a cheap Android tablet for surfing the web and checking their e-mail, while downloading only free apps and installing their own content on the device, Amazon may find it difficult to turn a profit on the device.