Amazon (AMZN) Could Blow Up iPad Sales... Pending Some Conditions (AAPL)
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Shareholders and gear heads alike are speculating on whether Amazon (Nasdaq: AMZN) is going to make a full-fledged tablet PC following the success of its e-reader, Kindle, for some time now.
According to AllThingsD, should Amazon conjure up a tablet PC before the end of 2011, the Android-equipped tablet device could sell from three to five million units in the fourth quarter this year.
Forrester Research cites two potential tie-ups which could hamper Amazon from reaching those numbers: 1. Pricing the device above $300, and 2. Supply chain issues. Should Amazon produce a quality device priced below $300 with the ability to get it to customers on a timely basis, success might be in hand.
Following the recent demonstration of how quickly Hewlett-Packard's (NYSE: HPQ) TouchPad sold following it's price cut, putting something comparable or better out there at a sub-iPad price would be noteworthy.
Forrester believes Amazon could fare better by not advertising the tablet as an Android-based device. Google's Android is becoming less and less of a selling point to the consumer. For example, Barnes & Noble (NYSE: BKS) emphasizes it's own brand and user experience with its NOOK reader, as opposed to the Google or Android brands, which its built on. This assumption is also backed up with Forrester data which shows about 9 percent of consumers aiming to buy a tablet look to get an Android-based device, compared with 16 percent for iOS, and 46 percent for Microsoft (Nasdaq: MSFT) Windows. Forrester also noted OEMs have voiced frustrations with Android, citing "its lack of polish, the terrible shopping experience in the Android Market, the rules that Google has set for Honeycomb use that limit differentiation, and the fragmentation of earlier versions of the OS."
Amazon closed 3.6 percent higher Monday.
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According to AllThingsD, should Amazon conjure up a tablet PC before the end of 2011, the Android-equipped tablet device could sell from three to five million units in the fourth quarter this year.
Forrester Research cites two potential tie-ups which could hamper Amazon from reaching those numbers: 1. Pricing the device above $300, and 2. Supply chain issues. Should Amazon produce a quality device priced below $300 with the ability to get it to customers on a timely basis, success might be in hand.
Following the recent demonstration of how quickly Hewlett-Packard's (NYSE: HPQ) TouchPad sold following it's price cut, putting something comparable or better out there at a sub-iPad price would be noteworthy.
Forrester believes Amazon could fare better by not advertising the tablet as an Android-based device. Google's Android is becoming less and less of a selling point to the consumer. For example, Barnes & Noble (NYSE: BKS) emphasizes it's own brand and user experience with its NOOK reader, as opposed to the Google or Android brands, which its built on. This assumption is also backed up with Forrester data which shows about 9 percent of consumers aiming to buy a tablet look to get an Android-based device, compared with 16 percent for iOS, and 46 percent for Microsoft (Nasdaq: MSFT) Windows. Forrester also noted OEMs have voiced frustrations with Android, citing "its lack of polish, the terrible shopping experience in the Android Market, the rules that Google has set for Honeycomb use that limit differentiation, and the fragmentation of earlier versions of the OS."
Amazon closed 3.6 percent higher Monday.
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