It’s hard to keep secrets these days. Amazon is the latest tech company preparing a big announcement this morning – the release of its new tablet. But by the time the announcement is made, the market will have already heard the message. Vendors orchestrate elaborate announcements to trumpet new products and services, but they end up more like the President’s State of the Union address – by the time they happen, there is practically a transcript already available.
Will the iPad meet its match in the new tablet from Amazon?
In the case of Amazon, this could be the first real threat to the iPad. We’ve heard it before: Samsung, Motorola, or others releasing the “iPad killer” tablet. So what’s different here?
Amazon has had the Kindle for quite some time now, and it’s been a nice e-reader. It was a fairly obvious move for Amazon to spur sales of electronic books. The release of the Kindle was not focused on whiz-bang technology, but rather it was focused on distributing content. For early Kindle readers, this content was books, now Amazon is looking to provide movies, music and apps through an Amazon Store. (Sound familiar?)
Most people think of Amazon as a big online retailer, which of course they are. But there’s more to Amazon. If you visit Amazon.com today, you’ll see product headings for Instant Videos, Music Downloads, Cloud Storage, Digital Games/Downloads, and even an Amazon Android App Store.
Also, on the front page of the Web site is this message from CEO Jeff Bezos:
“I have big news for Amazon Prime members – we’ve just signed a deal with FOX to add a broad selection of movies and TV shows to our unlimited instant streaming service later this fall. The new additions from the FOX library include 24, Arrested Development, The X-Files, Ally McBeal, Buffy the Vampire Slayer, and – available on digital video for the first time – The Wonder Years. We now have deals with CBS, NBCUniversal, Sony, and Warner Bros, and adding FOX will bring the total to more than 11,000 movies and TV shows available for unlimited instant streaming.”
Since launching earlier this year, we have now doubled the number of titles available in Prime instant videos, and there’s still more to come.”
What I’m seeing is a company that is releasing a tablet, but the device is not the headline. Some unconfirmed reports regarding the Amazon Tablet expect it to be similar to the RIM Playbook in appearance. It is also reportedly coming in at a lower price point than the iPad and other devices. There have even been reports by analysts that predict Amazon will sell the device at a loss.
So Apple is facing its first real challenge from a tablet competitor that has millions of loyal customers who already consume their content, all of whom already have credit cards on file, who may be looking for an alternative to the current tablets. They already have the Amazon Prime program which provides a lot of content and other benefits for a flat annual fee. They have the infrastructure and market position to make this successful.
In my opinion, the Amazon tablet is a means to an end. It’s solely designed to make it easier for consumers to access content distributed by the company. It’s no secret that Apple prices their products at a premium based on the impeccable user-experience and incredible design.
Amazon is taking a different approach – it may not be the slickest device on the market, but it may just be good enough for many at an aggressive price point where it could take some market share away from Apple.
For those of us in the enterprise mobility space, let’s see how many employees receive these new devices during the upcoming holiday season and are knocking on your door asking how to access to your enterprise systems via yet another consumer device. The need for a comprehensive mobile platform continues to be critical to business success.
Tags: 2011 Trends, Amazon Tablet, Android, Enterprise Mobility, iPad, Kindle, Matt Torgersen, Pragmatic Mobility
