25th Sept 2011 Update: We should hear a firm Kindle tablet release date in the next few days. Amazon have scheduled a rare press conference in New York, for Wednesday 28th. We expect journalists will be shown the first official look at their new tablet which will be the first colour Kindle, along with a firm date on when we can start buying it!
The Kindle is dominating UK and US ebook reader sales. Analysts have been warning since the iPad was first unveiled that these simple e-readers would simply not be able to compete once we had seen tablet PCs. They were very wrong obviously and despite the growth in tablets available, Kindle sales continue to grow steadily.
But what about a move towards an Amazon Tablet Kindle? Well, it seems those same analysts such as Sarah Epps at Forrester Research think the time might come that we do in fact see a Kindle tablet since whilst tablets are popular they have yet to kill off the Kindle brand as might have been expected. The web is rife with rumours that it could well be seen in 2011.
Why a Tablet Kindle?
Well the key is that whilst many of us agree that reading is best done with an e-ink display such as that used on the current best selling ebook reader, there are also a lot of us that love the multi-functionality and sexy touch screen navigation of the new tablet PCs. We might keep the original Kindle for when settling down to a serious few hours of relaxing reading. But on the commute perhaps a tablet that means we can check out the news, read a little, email a few friends and indulge our Twitter habit, all on once device might be an attractive proposition.
Of course you can do that already, just rush out and buy an iPad or one of the many new tablet PCs being released this year. Of course many of us will no doubt pick up a tablet at some point.
But all those Apple wannabees are at a huge disadvantage to a mythical Amazon tablet. They are finding it very hard to produce a profitable tablet PC. The technology is expensive and of course that makes it far harder to break into the Apple stranglehold on the market. None of the newer brands of tablets have the same distribution network and ability to advertise so effectively as Amazon. So many of us already their customers that offering us another product would presumably be an easy sell. Of course the biggest advantage is that Amazon have already seen just how profitable it can be to sell at a loss. The current Kindle reader costs more to produce than we pay for it. But that doesn’t stop the biggest online book store making a huge profit from the device. Once sold we continue purchasing new books to read, boosting their sales figures hugely.
Perhaps a Kindle tablet could be sold in a similar way. With their growing App store, games, ebooks and periodical subscriptions an Android tablet could become profitable pretty soon if Amazon do release it. A tablet version of the Kindle brand is something that would not seem unfamiliar, and would come with the biggest store to deal with whose customer service is second to none. In fact it almost seems remarkable that we haven’t seen an Amazon tablet already.
But of course the online giant is not in the business of manufacturing computers so would presumably need a little help. But an ODM (original design manufacturer) such as HTC would have to get involved. But producing a Kindle branded tablet would be no problem for them, and would be very welcome by Amazon customers it seems too.
Kindle Tablet v iPad
The Forrester report suggests that Apple rivals simply will not be able to compete, and that this year iPad will take 80% of tablet sales unless Amazon step into the fray. The key reasons for their conclusions are based on the following:
The Sales Channel
The experience of shopping at an Apple store is something other tablet produces cannot compete with. Most rivals are sold by wireless carriers. Consumers are already happily buying electronics including the current Kindle reader, from Amazon so presumably would be happy to buy their tablet online. The Forrester results indicate that people prefer to buy products such as tablets online rather than in a wireless store.
The Amazon Brand
Put simply Amazon is trusted as a huge global brand. 24% of the consumers questioned by Forrester confirmed they would be happy to buy an Amazon tablet, whilst only 18% would consider a Motorola one.
Amazon Content
There is already a huge amount of content available from Amazon which suits the tablet market. It leads in comparison online shopping, Kindle content and is making headway into video streaming. With an Android Apps store due to open soon they have everything but the tablet it seems.
Kindle Pricing
Perhaps the killer point is that Amazon can be far more flexible on price. Whilst most of the rival tablets rely on wireless carriers to sell their tablets, locking customers into lengthy contracts, Amazon can keep customers far more happy. No locked in expensive contract to offset the tablet price. Simply sell at a lower discount price below cost and make up your profits by all the online content customers will buy. It has worked phenomenally well for the Kindle, so why on earth wouldn’t it work for a tablet?
If no-one else is going to be able to survive against the might of Apple’s iPad it looks like it is all down to the potential of a tablet Kindle to do the job!
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