Amazon CEO Jeff Bezos showed off the Kindle Fire–a $199 tablet computer–today, challenging Apple’s iPad by extending its Kindle brand into the world of full-colour, multipurpose devices.
The Kindle Fire will go on sale Nov. 15. It’s about half the size of the iPad, making it a close match with Research in Motion‘s Playbook.
Even before its release, the Kindle Fire was heralded as a worthy competitor to Apple’s iPad. Amazon is nearly unique in its ability to sell content such as e-books, movies and music suited for a tablet–just like Apple does.
Still, competing with Apple won’t be easy. Many have tried to copy the iPad’s success, but it remains the overwhelming frontrunner in the tablet computer category. Apple sold 28.7 million of them from April 2010 to June 2011. Analysts at research firm Gartner Inc. expect the iPad to account for three out of four tablet sales this year.
“Some of the companies that have made tablets and put them on the market… the reason they haven’t been successful is because they made tablets. They didn’t make services,” Bezos said in an interview. “So what we’ve done is really integrate seamlessly all of our media offerings: video, movies, TV, apps, games, magazines and so on.”
Forrester Research analyst Sarah Rotman Epps said selling all that content makes the Fire the only credible competitor to the iPad this year. “In theory, Sony could do something similar, but they haven’t, and it doesn’t look like they will. They have a tablet, but they only went halfway on the services,” she said.
Analysts had expected the Fire to go on sale for about $250. Epps called the $199 price “jaw-droppingly low,” and said it would introduce tough competition not just for Apple, but for contending tablet makers like Samsung Electronics, Motorola Mobility Holdings and HTC.
The Fire runs a version of Google Inc.’s Android software, used by other iPad wannabes, and will have access to applications through Amazon’s Android store. It lacks the cameras sported by practically every competing tablet. It also lacks a slot for memory expansion, a common feature on other Android tablets.
Bezos also took the opportunity to show off a new line of Kindle e-readers with black-and-white screens and lower prices.
Amazon’s cheapest new Kindle will cost $79. For $99, Amazon is also bringing out the first black-and-white Kindle with a touch screen. A version with access to AT&T’s cellular network will cost $149. Versions without advertising cost an extra $30 to $40. Bezos said the models subsidized by advertising have been the most popular.
Previously, the cheapest Kindle cost $114, with advertising. That price was reduced Wednesday to $99.
Bezos said he doesn’t see the Fire as eventually replacing the Kindles.
“What will happen is people will buy both. Because they’re really for different purposes … For people who are into reading, it makes sense to have a device that’s purpose-built,” he said.
