Kindle Fire a 7-inch color touch screen and a dual-core processor, a new mobile device launched by Amazon, at a conference held in Manhattan on Wednesday, resembles with a tablet, and one not so different from the Apple iPad.
It’s a ‘Service’ which will be real differentiator – Jeffrey P. Bose
Jeffrey P. Bezos, Amazon’s founder and chief executive refer Kindle Fire as ‘Service’ rather than a device. According to him It will appeal to a different set of customers who are magazine readers and cinema fans. The new device is colorful unlike its earlier version where the user gets to read E-book on Kindle with Black and White screen.
‘Amazon Silk’ – its custom-built Web browser, which loads media-rich Web pages faster by shifting some of the work onto Amazon’s cloud computing engine, called EC2. The tablet also includes a free cloud-based storage system, meaning that no syncing with cables is necessary. With Kindle Fire Amazon want to leverage its large customer base by selling books, movies and popular television shows.
Unique selling Proposition
It’s a Unique selling Proposition (USP), as Amazon sells its family of Kindle devices through its own Web site, it does not need to share revenue with another retailer. “Amazon Prime” – $79 a year, which gives them access to Amazon’s movie streaming service and free shipping, which in turn, encourages more shopping at its web site – Amazon.com.
Another unique offering is magazine-selling business – Digitally, Amazon has also tried to secure its foot in a digital marketplace where Apple has a very strong hold. According to some analyst negotiation dynamics will change very dramatically with Apple, as Publishers of magazine companies have a more bargaining power.
Owners of Kindle Fire will have access to Android apps approved by Amazon and distributed through its Amazon Android Store. Even the Kindle Fire’s software, based on a Google Android framework, is disguised under a custom layer built by Amazon. Mr. Bezos said the company decided not to work closely with Google to develop the Fire, unlike most hardware makers that build products on Android, that is why a custom layer build by Amazon came into the picture.
Deadly and very compelling at $ 199
Kindle Fire is priced at $ 199 which is half of Apple iPad is certainly going to give real competition to Apple’s iPad. According to analyst Amazon’s diversified online warehouse of more than 18 million e-books, songs, movies and television shows, as well as access to a selection of Android applications, to help it beat competitor like the iPad. It’s a deadly and very compelling offering, which user can not refuse.
Ezilarsan PKP is an entrepreneur, iit-madras alumnus, the Founder of MarketExpress - India's First Global Insights & Analysis Sharing Platform & co-founder of 
