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Amazon fuels tablet war with Fire

Tags: Amazon, Apple

Amazon is taking on Apple with its own entry into the tablet market, the Kindle Fire – and its price tag of $199 US is undercutting the top-selling iPad.

But Krista Napier, senior analyst for digital media at IDC, says the low price point will be a factor in the Fire’s success.

“What we’ve seen in our research is that Canadian consumers ideally would like to spend between $300-$500 on a media tablet. They don’t want to spend more than $500,” she says.

Napier says the market has seen a lot of devices that are over that price point.

 “A device that is coming in at the low end of the market will be very appealing not only to those who are looking at buying one of these more expensive devices, but it opens up the opportunity to expand this market to all those individuals who perhaps weren’t able to afford one of the more expensive devices.”

The $200 price point opens up the market to a new kind of consumer, she says. Apple’s iPad retails for $499 US.

“What we do expect to see moving forward is the price points coming down. There have been some price wars happening – we just saw RIM lower the price of their PlayBook this week by $100,” Napier says. CTV Two CTV News CTV News Channel BNN - Business News Network CP24