Amazon.com Inc. (AMZN) is updating its line of Kindle e-readers and tablets in a bid to stoke consumer demand as Google Inc. (GOOG) and Microsoft Corp. (MSFT) join the crowded market of machines challenging Apple Inc. (AAPL)’s iPad.
The web retailer previewed a Kindle Fire HD priced at $199 for a 7-inch screen, $299 for an 8.9-inch screen, and $499 for a model with 4G long-term evolution wireless technology. An upgraded Kindle Fire tablet with a 7-inch screen will cost $159, the company said at an event today in Santa Monica, California. Amazon’s shares closed at a record high.
Chief Executive Officer Jeff Bezos is retooling the Kindle Fire to revive slumping demand as consumers face a widening array of options -- including new entries from Google and Microsoft -- in a market dominated by Apple. Amazon relies on the Kindle to help sell digital movies, books and music -- an effort that may bolstered by the revamped device.
“The launch is important as it sets the stage for a fierce market share battle with Apple and Google -- or more likely a battle for second place, given Apple’s significant advantages,” said Colin Sebastian, an analyst at Robert W. Baird & Co. in San Francisco.
Facebook, Skype
The Kindle Fire HD has custom-built apps from Facebook Inc., operator of the world’s largest social network, and Skype, the Internet-calling service acquired last year by Microsoft. Data for the model with LTE will cost $50 a year.
It will include a front-facing HD camera for video-calling, dual stereo speakers with Dolby Digital Plus audio and start with 16 gigabytes of local storage for the cheapest model. Amazon also touted its ecosystem of more than 22 million movies, television shows, songs, apps, games, books and magazines.
“Last year there were more than two dozen Android tablets launched into the marketplace and nobody bought them,” Bezos said at the event in Santa Monica. “People don’t want gadgets anymore. They want services. Kindle Fire is a service. It greets you by name, it comes out of the box with your content preloaded, it makes recommendations for you.”
Amazon’s share of the global tablet market slipped to 4 percent in the first-quarter from 17 percent in the December period, according to research firm IDC. Apple widened its lead in the market to 68 percent in the first quarter, IDC said.
Microsoft, Google
The original Kindle Fire, which Amazon started selling in November for $199, cost the company $139.80 apiece to make, according to IHS.
“If we made our money when people bought the device, we’d be rolling out programs left and right to try to get you to upgrade,” Bezos said. “We want to make money when people use our devices, not when they buy our devices.”
Microsoft and Google are pushing into a market that may reach $66.4 billion this year, according to research firm DisplaySearch. Apple plans to debut a smaller, cheaper iPad by year-end, two people with knowledge of the plans said in July.
1 comment:
Come and see how THOUSAND of individuals like YOU are earning their LIVING online and are fulfilling their dreams TODAY.
GET FREE ACCESS INSTANLY
Post a Comment