Tuesday, October 9, 2012

Amazon as a Player in the Tablet Space

Up until last year, one did not associate Amazon with tablets. The company was mainly known as an online retailer, with some of it's customers using their content services to buy movies, music, and books on their Kindle e-readers. Once the Apple iPad was introduced in 2010, however, a whole new market segment emerged. Samsung was quick to respond, releasing the Galaxy Tab in a hurry, before Google even had their tablet-optimized OS, Honeycomb, ready. The initial excitement created by a competing product quickly died down once consumers realized that there was barely any content, comparatively at least, on the then-called Android Market that one could take advantage of on a tablet. Also, even the regular apps weren't and still aren't optimized for a tablet's screen size, unlike with the iPad, which has a separate app store to take advantage of the 9.7 inch screen. 

Amazon saw an opening. They already had an impressive content selection, and because of their Kindles, their consumers already associated the company with quality hardware. From this the $199 Kindle Fire was born, released just in time for holiday shoppers last year. It possessed a similar form factor of their e-readers, having a 7 inch screen, making it a perfect portable media device, whether for reading books or watching movies. Although it technically runs Android, the Seattle-based company opted out of a public relationship with Google, wanting to solely promote their brand. There is no Google branding on the tablet itself, and it runs a heavily skinned version of Mountain View's OS. Additionally, you cannot access the Google Play Store; Amazon created their own app store, with it's own developer guidelines. This results in a somewhat limited tablet experience, yet for the average user who mainly consumes media content, it is perfect. Unlike even the current Android tablets, it offers applications that look great at that larger screen size, and consumers can browse a multitude of movies, music, magazines, and books.

The other Android OEMs essentially approached the tablet market in the wrong way. They were quick to push out hardware, with some offering their own content stores within Android, like Samsung's Music Hub, yet they relied primarily on Google, a company that has publicly stated they are mainly interested in smartphones, to provide content. Amazon first built their impressive media collection, then made cheap hardware that acts as an outlet for consumption. It's just been less than a year since the Kindle Fire was first introduced, yet one can already see the effects. At the end of 2011, 81% of tablet users used iPads, with Android taking a paltry 15%. As of October first of this year, however, Apple commands 52% of the market, while the Kindle Fire alone accounts for 21% of Android's 48%. The Seattle company has surprised the technology world, officially becoming a major contender in the tablet space, and with the release of the Kindle Fire HD and Kindle Fire HD 8.9" two weeks ago, the future looks bright for the company that is not afraid of challenging the industries biggest players.