While the low-low price of Amazon’s new tablet, the Kindle Fire, is mistaken being called a viable competitor for the iPad, Apple is perfectly happy with the gadget’s introduction into the tablet market because it just adds another level of fragmentation to the Android platform.
According to Business Insider, analyst Ben Reitzes of Barclays spoke to Apple CEO Tim Cook and CFO Peter Oppenheimer regarding the Kindle Fire. They don’t seem to be the least bit worried about Amazon’s soon-to-be-released tablet.
From Business Insider:
The more fragmentation, the better, says Apple, since that could drive more consumers to the stable Apple platform. We believe that Apple will get more aggressive on price with the iPad eventually but not compromise the product quality and experience.
The Fire has a different look than other Android-based tablets, which may cause them to look strange, and this device may even fuel a whole new category of custom built Kindle Fire apps, further fragmenting the operating system market.
While Amazon has made a smart move by offering their tablet at an impossibly low price of $199, the Kindle Fire is also half the device that the iPad is. By undercutting their competitors, Amazon will gain momentum in the category of market share, but it is less likely to sustain longevity once people realize that the Kindle Fire is more like a toy than a piece of technology.