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October 2, 2011

Kindle is about to set tablet PM market on Fire

After a few days of digesting the information about Kindle Fire I decided to write what I think about it. Just like the price made personal computer personal and mainstream, its price will make Kindle Fire a success. Will it kill the iPad? No. They will co-exist successfully. Apple command premium price deriving from premium brand and Amazon has always been a cost leader or loss leader. Price makes all the difference for Kindle to be successful, access to content and productivity apps. Both strategies work. BlackBerry Playbook and HP TouchPad that just got eviction notice from the tablet PC market.

My question is if Kindle is Window 8 killer? Windows 8 is Microsoft next version for tablet PCs and slates. Microsoft has never charged high premiums and has always been a follower into a proven market. When Windows 8 will ship there will be two very successful platforms on the market. Is Windows 8 going to struggle gaining market share just like Windows Phone 7? Very likely.



Even though market share will be hard to gain Microsoft patents business will reach billion dollar revenue from Android patents. Amazon is already paying Microsoft licensing fees for technologies in its Kindle e-reader. Those fees did not include Android, says Seattle Times. Of cource, Microsoft would trade all the revenue from Android patents to the success of own mobile platform.

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