And they call themselves ‘Analysts’… October 1st, 2011
Check out the last brilliant thought from J.P Morgan analyst Mark Moskowitz, I quote from a note sent to clients concerning the new Amazon Kindle Fire:
“We are not impressed with Kindle Fire. In our view, [it] is a stepping stone, at best, into the tablet market. We think that for any vendor to wrestle momentum from Apple, a fully-loaded offering is a must, and here, Kindle Fire falls short for now.”
So, thank you Mr Moskowitz to let us know that we can still safely buy Apple stock and Apple’s lunch won’t be eaten by Amazon once their new tablet is released. I really appreciate that insight. Now maybe what you missed here is that Amazon is not entering the tablet market, Amazon will offer a device that will allow its customers to consume the content they have for sale. Books, magazines, TV shows and movies. They don’t care about the tablet itself. Amazon is a retailer not a computer manufacturer. They want to leverage their advantage as a retailer, they cannot care less about the hardware.
That’s a significantly different purpose and obviously it has been entirely misunderstood.
What amuses me in the aftermath of Amazon announcement is how every other manufacturer of 7 inch tablets is lowering the price. Yesterday the RIM playbook went from $499 to $299 and the same thing is happening today to HTC Flyer tablet.
Still there is very little hope for them to have a significant market share anytime soon because… they lack any significant content. Why would you buy a HTC tablet and have no movies or books to read on it. When you buy your Amazon tablet everything is here available for you.
When journalists were reviewing the various tablets that have been introduced this year their conclusion was always the same – there are no reasons to buy this tablet instead of an iPad. Now Amazon join the party and the same question still apply – if you want a $500 device there are no reasons to buy anything else than an iPad, if you want a $300 device there are no reasons to buy anything else than the Amazon Fire.
And there is room in the market for a $500 device AND for a $300 device.
