We started to hear credible rumors of a pending Amazon tablet back in the spring. We even speculated on what Amazon was up to back in May, a point at which my guess was that Amazon would go with a 7-inch form factor rather than trying to compete head on with Apple's iPad with a 10-inch model.
A few days ago the web lit up thanks to a TechCrunch article claiming hands on time with a prototype of Amazon's forthcoming tablet, along with technical details on the device. Given the source, I think it's safe to say the cat is out of the bag and the Kindle tablet is real. Here are the details the writer provided on his experience (full article here):
- The Kindle tablet uses a 7-inch color LCD display with a capacitative touchscreen. Believed to be capable of two-finger gestures, not 10 (as employed by iPads).
- There are no physical buttons other than an Off button.
- Utilizes a customized version of Android.
- Amazon services are deeply integrated into the UI- Kindle app for e-books, Amazon Could Player for music, Amazon Instant Video player for movies and Amazon's Android App Store for apps.
- A web browser is included.
- Initial version is Wi-Fi only.
- Internal storage of 6GB.
- No camera.
- Micro USB port.
- Priced at $250.
- E Ink-based Kindle e-readers continue to be available.
Based on this information, it looks as though Amazon is gunning for the NOOK Color rather than directly taking on the iPad. Sure, the Kindle tablet could replace an iPad for many people —especially those who use one primarily for media consumption— but the capabilities are somewhat limited compared to Apple's bigger and more expensibve device.
However, a 7-inch Kindle tablet poses a serious threat to Barnes & Noble's NOOK Color. Besides offering the same basic specs as B&N's popular e-reader, Amazon ups the ante with enhanced multimedia capability, a bigger app store and a matching price (which analysts have speculated might be be lowered further through ad-supported versions or Amazon discounts). NOOK Color is also a year old. Although Barnes & Noble has continually upgraded functionality through firmware releases, the device will likely be outclassed in terms of performance by a faster processor in the new Kindle.
The strategy makes perfect sense. The NOOK Color recently overtook Amazon's E Ink Kindle as the best selling e-reader, so there's a bragging rights score to settle. And when the sales figures for tablets are tallied, the NOOK Color —if counted as a tablet computer instead of an e-reader— becomes the second best selling tablet after the iPad. If an Amazon 7-inch Kindle, with additional functionality compared to a NOOK Color, was able to take over second spot as a tablet, the device would pose a much bigger threat to Apple in terms of syphoning off potential iPad buyers who were looking for a cheaper solution. Amazon's cloud media services combined with a Kindle tablet will have been proven as a successful alternative to iTunes and iCloud with iPad. And from that position, a future 10-inch Amazon tablet that would be a much more credible iPad competitor could succeed where so many other tablets have failed.
At this point in time, Barnes & Noble has to be worried. And you can bet that Apple is watching very closely as well.
