By Brendan Lynch
Internet retailer Amazon.com is expected to debut a tablet version of its popular Kindle e-reader computer tomorrow — which could give Apple’s iPad its first serious challenge, but will almost certainly drive shoppers to the e-commerce site, experts say.
“This is a Trojan horse to get a dedicated Amazon transaction engine in your house,” said Carl Howe, of Boston technology research firm Yankee Group. “It’s all about transactions. My gut sense is, if they gave it away, they’d make money.”
Seattle-based Amazon, known for its Kindle e-reader gadget, has scheduled a press event for tomorrow morning, and is expected to announce a 7-inch, full-color tablet running a customized version of Google’s Android operating system for $250 — half the price of an iPad.
Internet retailer Amazon.com is expected to debut a tablet version of its popular Kindle e-reader computer tomorrow — which could give Apple’s iPad its first serious challenge, but will almost certainly drive shoppers to the e-commerce site, experts say.
“This is a Trojan horse to get a dedicated Amazon transaction engine in your house,” said Carl Howe, of Boston technology research firm Yankee Group. “It’s all about transactions. My gut sense is, if they gave it away, they’d make money.”
Seattle-based Amazon, known for its Kindle e-reader gadget, has scheduled a press event for tomorrow morning, and is expected to announce a 7-inch, full-color tablet running a customized version of Google’s Android operating system for $250 — half the price of an iPad.
Greg Raiz, CEO of mobile app developer Raizlabs, said while there have been several Android tablets, such as the Motorola Xoom and the Samsung Galaxy Tab, none has been a runaway success like the iPad.
Last month, Hewlett-Packard shut down its mobile devices unit and liquidated its remaining TouchPad tablets for as low as $99, sparking a buying frenzy. Meanwhile, BlackBerry maker Research in Motion revealed earlier this month it had sold only 200,000 PlayBook tablets in the second quarter.
The Amazon tablet announcement kicks off a gadget manufacturer scramble to have the hot device of the holiday season, Raiz said. Next up is an Oct. 4 Apple event rumored to unveil the iPhone 5.
Raiz said Amazon has a unique shot at challenging Apple’s dominance of the tablet market — which research firm IDC pegged at a 69 percent share in the second quarter of 2011 — mostly because the online retailer can afford to keep prices down to a level more attractive to consumers.
“The device may break even or lose a bit of money, but they suspect people will buy content from it,” Raiz said. “Their business isn’t tied to devices. They have a content business. Over the last three to five years, they’ve lowered the prices of their Kindles.”
Meanwhile, Amazon advanced its content business with a deal yesterday that allows its Amazon Prime service to stream 20th Century Fox movies and TV shows such as “24” and “Arrested Development.” And last week, Amazon debuted a beta test of a service allowing Kindle owners to “borrow” books from libraries in the Seattle area.
Howe doesn’t see Apple and Amazon competing directly — yet. He thinks an Amazon tablet will focus on books, with video and music added in, while the iPad is a more complete multimedia device. Still, he expects the Amazon tablet to sell millions of units, with the measure of success being how quickly.
Last month, Hewlett-Packard shut down its mobile devices unit and liquidated its remaining TouchPad tablets for as low as $99, sparking a buying frenzy. Meanwhile, BlackBerry maker Research in Motion revealed earlier this month it had sold only 200,000 PlayBook tablets in the second quarter.
The Amazon tablet announcement kicks off a gadget manufacturer scramble to have the hot device of the holiday season, Raiz said. Next up is an Oct. 4 Apple event rumored to unveil the iPhone 5.
Raiz said Amazon has a unique shot at challenging Apple’s dominance of the tablet market — which research firm IDC pegged at a 69 percent share in the second quarter of 2011 — mostly because the online retailer can afford to keep prices down to a level more attractive to consumers.
“The device may break even or lose a bit of money, but they suspect people will buy content from it,” Raiz said. “Their business isn’t tied to devices. They have a content business. Over the last three to five years, they’ve lowered the prices of their Kindles.”
Meanwhile, Amazon advanced its content business with a deal yesterday that allows its Amazon Prime service to stream 20th Century Fox movies and TV shows such as “24” and “Arrested Development.” And last week, Amazon debuted a beta test of a service allowing Kindle owners to “borrow” books from libraries in the Seattle area.
Howe doesn’t see Apple and Amazon competing directly — yet. He thinks an Amazon tablet will focus on books, with video and music added in, while the iPad is a more complete multimedia device. Still, he expects the Amazon tablet to sell millions of units, with the measure of success being how quickly.
-— brendan.lynch@bostonherald.com
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