Could the Kindle Fire force tablet makers to lower prices?

Kindle Fire may lead to slashing of the price of a lot of Android Tablets

With the launch of the Kindle Fire by Amazon.com with a price of $199, a lot of Asian Technology Companies came under pressure for slashing their tablet prices. All the major companies from Samsung to Sony were planning for taking on the Apple iPad, who are really booming in the market.

They had priced their tabs near the $499, which seems to be the starting price for the Apple’s iPad. However, they are not quite successful in gaining much of market share.

Though, Samsung has managed to get the second position of the share in the market, but it may lose this position to the Kindle Fire as it is being offered at a price of $199. According to Adam Leach, an Analyst at research firm Ovum, price is critical to gain traction in the tablet market, and the rival manufacturers of apple have failed to attract customers as they have matched the price, without matching the content offering.

The Kindle Fire lacks a lot of high end features like the cameras, 3G wireless connectivity and so and so, but they have priced the device according to the features they have provided. Although the Fire is offered at half the price of an iPad but it still has a lot of costlier features and components. Amazon hopes to provide this device into hands of millions of customers.

Source(s)

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Author: Pallab Jyotee Hazarika, 2011-10- 5 (Update: 2012-05-26)