This year in October, Amazon.com Inc has planned to introduce their own tablet. This would be a great step which would help the Internet retailer who is one of the largest in the world to get a better hold in the market. On Wednesday, Wall street Journal reported that Amazon has planned to come up with a tablet which would have a screen of nine inch and would be running on Android. The launch is planned October or even before.
Amazon.com has been in the Internet retailing for years now and this is a step to expand its territory and to enter the mobile commerce. The investors and analysts are of the view that Amazon.com will not stop here and would even get into selling of other digital products. However some of the investors and analysts have agreed that they were expecting Amazon to come up with a tablet since the last few months. As it is, July saw Amazon’s shares recording a new high and it would encourage the BOD of Amazon to think of this launch optimistically.
Amazon has a few advantages with the offering of the tablet which can strengthen its stand in this competitive market. These advantages are digital media offering, user base and the brand. Amazon has a recognizable brand and there are many users worldwide which have been buying and selling products on Amazon.com. The biggest advantage of all is that people nowadays prefer buying gadgets mostly on-line and the personal purchasing of these products is comparable.
Canaccord Genuity, computer hardware analysts wrote to the investors in a note that the third quarter of the financial year would most probably see the coming of Amazon tablet which could count up to 1.5 million at least. However target for this year is estimated to be around 5 million tablets.
Detwiler Fenton’s technology research director Mark Gerber claimed that Amazon would get the second position in the tablet market as not many tablets have actually clicked the right button to get notable success. Gerber gave an example of Research in Motion’s PlayBook and Motorola Mobility’s Xoom who have been struggling to sell their tablets mainly because they have not connected that well to the content as one in this field should. However, Apple Inc and Amazon would then once again compete with each other as iPad tablet is a top-seller currently and rules the tablet world.
Talking about this rivalry in detail, where iPad can offer buying digital books, videos and music, Amazon can offer access to streaming, renting or buying of videos, music and even Kindle ebooks. Additionally Gerber even stated that this tablet would give free access to streaming of Amazon’s video-on-demand service which would be an limited to an introductory period. The similarity between Amazon’s strategy as compared to that of Apple is that Amazon has opened up an Appstore in March this year, which is for selling Android tablets and smartphones only and Apple even provides a similar service to its users. Amazon just went a step ahead by launching a Cloud Drive service which allows the visitors to keep files stored on Amazon servers.
Jeff Bezos, chief Executive for Amazon has however said that this is just an attempt to make a mark in the Tablet world and are not trying to kill any other competitor completely. Smead Capital Management’s , chief investment officer Bill Smead said that Amazon’s step is majorly taking this step to support its main line of business. He even said that it cannot be that Amazon has taken this step majorly to enter the tablet world or compete with the best in the world as making money out of selling these tablets wont fetch them a huge monetary gain.
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