Amazon’s New Kindle Fire Tablet to Steal iPad Market Share?

Jessica Hoppe

Apple is to electronics what Facebook is to social media, but Amazon’s new Kindle “Fire” is looking to smoke the competition!

TheWall Street Journal Inc. unveiled theKindle Fire tablet computer today, the latest — and possibly biggest — challenger toApple Inc.’s dominant iPad. The brand-new Kindle Fire has all the capabilities of the iPad with immediate access to stream movies and TV shows while being approximately $300 cheaper (priced at $199 while the lowest priced iPad is $499).

ThePost reports that while other iPad competitors have failed miserably, analysts predictAmazon will sell between 5 million and 10 million tablets the first year. Apple sells about 10 million iPads a quarter (no chance of beating that!) but they do seem poised to take the #2 spot.

According to reports, no one comes close to topping Apple in the tablet war, as the iPad is Apple’s second-biggest revenue generator — $6 billion in the last quarter alone — while Amazon is likely to lose money on its tablet sales.

Amazon, who is notorious for its low profit margins, launches the tablet at a key time as they look to build their e-commerce and media empire. Amazon went to great lengths to secure media deals with movie, television and magazine publishers in order to offer more content prior to launch thereby gaining market share on the iPad.

Although it does not seem Apple has a reason to be threatened by Amazon’s new Fire, they certainly haven’t let the launch go unnoticed. Justyesterday Apple officially announced its iPhone 5 event (set for Oct. 4), no doubt hoping to put a damper on possible Amazon sales.

Oh, is that a bit of sweat I see, Apple? Hmm, maybe you shouldn’t play with “fire” then.