Tuesday, July 26, 2011

Why The Amazon Tablet Will Be Killer (AMZN, AAPL)


The Amazon tablet is coming in the Fall, and all evidence points to its being a killer device. 

Tech gadget review site Retrevo polled their users and found out that what they want in a tablet is what Amazon can give them: namely, lower prices and a trusted brand. 

Their survey says what prospective tablet customers want most is lower prices:

retrevo amazon tablet survey low price

What's more, customers trust the Amazon brand to make a great tablet more than most customer electronics brand (also: look at how badly RIM is doing):

retrevo amazon tablet survey brand preference

And while most people prefer an iPad, there's also a lot of people who are open to buying some other tablet:

retrevo amazon tablet survey ipad

Amazon is best positioned to make a really good tablet at cheap prices for the following reasons:

  • Scale. Amazon is huge and can team up with an OEM to drive down prices for an Amazon tablet.




  • Distribution. Amazon owns the world's biggest shopping mall. Retailers' cut are a huge part of the price of tablets, and Apple and Amazon are the only ones who have their own huge retail operation. What's more, Amazon already has deals in place with retailers to sell its Kindle e-reader, so it stands to reason it could also sell tablets through them.




  • Media. Amazon has its app store, its Kindle e-book platform, its MP3 shop and an increasingly good video store.




  • Product experience/design. The Kindle is a great device, and Jeff Bezos is a product visionary. No one expects an Amazon tablet to be better than an iPad, but there's no reason why they can't make a tablet that's very good at a very good value. 
  • Don't Miss: Here's Everything We Know About The Amazon Tablet So Far →

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    Why The Amazon Tablet Will Be Killer (AMZN, AAPL)


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