Yesterday in New York Amazon unveiled its new Kindle line up. An updated basic Kindle ($79, e-ink), Kindle touch ($99, e-ink, touchscreen), Kindle touch 3G ($149, e-ink, touchscreen, 3G) and, what we've all been waiting for, the Kindle Fire ($199, full colour touchscreen and running on Android).
So, will the Fire will kill the iPad? Of course not. The iPad install base is massive and will dominate the tablet market for the next 2-3 years in the same way the iPhone rules over the smartphone market, but, crucially, iOS no longer does (iOS is the operating system iPhones and iPads run on. Google's Android is the major rival operating system that runs on many, many phones and tablets. It's why you should compare os with os, not model with model). Just like iOS was overtaken by Android on smartphones, Android tablets (in total) will overtake the iPad, and the Fire is quite definitely leading the charge.
What's the Fire got that other Android tablets were lacking I hear you ask? (I installed the new Facebook "listen" button on this blog which automatically turns your computer/tablet/phone microphone on. Okay, I'm lying, but do you really believe it's not coming?) Simple:
- Cost
- Ecosystem
- Familiarity
- Confidence
- Positioning
The cost is going to be the main focus for the next few days and later when the Fire officially goes on sale in November. At $199 it's less than half the price of an iPad and far far cheaper than all other Android tablets out there. Amazon are going to be happy to sell the device itself at a loss (just like the old Kindle) because they'll make all their money on selling you the media to consume on it.
That leads us nicely to the ecosystem. Sure, other tablets have the Android marketplace, but what Amazon can offer is an experience to rival the iTunes store: a single destination with a single log in that lets you download TV shows, movies, music, apps and books with a single click. If you want to know what it's going to be like, download the Amazon mp3 app onto your Android device and buy an album. Seriously, I'll wait. (You can get Pulp: Hits for £3 on there. Yes, I know you've already got Different Class and there's a good chance you've got His n Hers as well, but I bet you don't have This is Hardcore. Got you there, eh.) Right, see how simple that was? And it's even easier the second time when you don't need to set anything up. It's the same for buying an ebook on the current Kindle (like A Game of Throne. Yes, I am going to crowbar in a reference to that in every post. Why? Because it's brilliant) That's what buying all media on your Fire is going to be like.
The other massive advantage Amazon has with its ecosystem is familiarity. Millions already know how to use the Amazon store because they've already been using it on the web for years. And have already set up an account. With their credit card. See where this is going? First time you by an iPad or iPhone you have to set up your Apple ID and provide a credit card. With the Fire you've already done this, and you know exactly how it's going to work.
What about customer confidence? Buying any new device is always a risk. How long will it be supported? What if it breaks? Will anyone else buy one? That's where the Fire once again comes up trumps. The Kindle has a huge install base. By calling their tablet the Kindle Fire Amazon are telling us "it's just like the device you know and love, only even better". No one is going to be worried about buying a Fire.
That leaves us with positioning, and a very smart move by Amazon. They didn't just unveil the Fire yesterday, they sat it alongside 3 new models of e-ink Kindle. This isn't the new iPad, it's an ultra supped up Kindle. Amazon apparently have a 10" model in the works which at a purely visual level would look like an iPad rival, but they deliberately didn't wait for this to be ready. They launched with the 7" version that looked like a Kindle. It's a portable device for consuming media, and for many people that's all they'll want their table for.
As an addendum, I should mention the Fire has a new web browser built in (front end developers are quietly weeping as I write). I'm not technically proficient enough to go into the pros and cons of this, but several commentators are getting very excited about it.
The other question is, where does this leave e-ink? Amazon certainly took a bold step towards answering that with unveiling not 1 but 3 new e-ink devices. If you're a voracious reader, you're going to want an e-ink Kindle over the Fire. But at these prices, you can afford to buy both.
