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Amazon unveils Kindle Fire

Amazon founder Jeff Bezos holds the new Amazon tablet called the Kindle Fire on September 28, 2011 in New York City.

- Spencer Platt/Getty Images

Amazon founder Jeff Bezos introduces three new Kindle models and the new tablet called the Kindle Fire on September 28, 2011 in New York City.

- Spencer Platt/Getty Images

The new Amazon tablet called the Kindle Fire is displayed on Sept. 28, 2011 in New York City.

- Spencer Platt/Getty Images

New Amazon Kindle products (L-R), Kindle Touch, Kindle Fire tablet and new Kindle are displayed at a press conference in New York on September 28, 2011.

- Spencer Platt/Getty Images

The new Amazon tablet called the Kindle Fire is displayed on September 28, 2011 in New York City.

- Spencer Platt/Getty Images

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Kai Ryssdal: Analysts call it first-mover advantage. Consumers call it getting the cool new gadgets before everyone else.

But whatever you call it -- Apple has it. First with the iPhone, then with the iPad -- the past five years or so Apple has been able to take huge chunks of whatever mobile market it wants.

Which is why what was basically a public relations event in New York today was such a big deal. Amazon CEO Jeff Bezos pulled back the curtain on one of the most hotly anticipated gadgets of the season: the Kindle Fire. It's billed as being more than just another e-reader and -- Bezos fervently hopes -- a worthy competitor to the aforementioned iPad.

From WNYC in New York City, Ilya Marritz reports.


Ilya Marritz: The Kindle Fire offers all the things earlier Kindles didn't: movies and music, magazines in full color and video games. Amazon CEO Jeff Bezos demonstrated his virtual pineapple-chopping skills on a game called Fruit Ninja.

Jeff Bezos: I also have to admit, I find this a little uncomfortably therapeutic.

It's easy to understand why Bezos might crave a little mindless relaxation. The Kindle Fire is going up against the iPad in a competitive arena where other tablets have gone to die. Like the iPad, the Fire is mostly screen, and you operate it by touch. But the Fire is smaller -- just seven and a half inches.

And something else is smaller too: the price.

Bezos: It's $199.

Sarah Rotman Epps: You could buy four Kindle Fires for the price of one souped-up iPad.

That's Sarah Rotman Epps, a tech analyst with Forrester Research. Epps says Amazon may be selling the Fire at a loss. That's because the online retailer wants the Fire is to function mainly as a virtual shopping cart.

Epps: Putting this device in consumer's hands pretty much guarantees that they will be a serious Amazon spender.

Loading up on digital content like music and books, and maybe some pots and pans too.

Analysts predict sales of the Fire could top three million this year. The tablet ships on November 15th -- in plenty of time for you know what.

In New York, I'm Ilya Marritz for Marketplace.

About the author

veronicadavis's picture
veronicadavis - Dec 28, 2011

Excellent article! For thousands of customers, the Kindle Fire has established a way to get a tablet computer without spending almost $500. The promise of a fully functional Android tablet for an extremely low cost, though, has met with the facts of a brand name tablet. The Kindle Fire system was, at some point, locked down to allow only Amazon applications. However, changes set in. Have you heard the latest about Kindle Fire? The other day, I came across an article entitled "<a title="Amazon Kindle Fire updates to allow competing e-reader apps" href="http://www.appisaurus.com/2015-amazon-fire-updates/">Amazon Kindle Fire updates to allow competing e-reader apps</a>". Yes, you read it right! The latest update to the Amazon Fire operating system allows for a bit more openness in the operating system. This is awesome, don't you think?

Chris M's picture
Chris M - Sep 29, 2011

"the past five years or so Apple has been able to take huge chunks of whatever mobile market it wants."

Uhhhmmm....like the 50% of the smartphone market that it has lost to Android phones? Do you think that Apple just didn't want that market?

This story exposes a rather deep lack of understanding of the mobile market on the part of the author. The story is not Apple vs Kindle, it is Apple vs Android.

Apple provides a one-size-fits-all product - if you want to become a member of that community, you buy an iPhone. There are no alternatives. Android, on the other hand, is an ecosystem that allows consumer choice and provides a wide range of products in a variety of prices, form factors and feature sets but share a similar user experience and a huge market of (mostly) compatible applications.

When the Motorola Droid came out, media hacks asked if it would be the iPhone killer? The same has been asked about several other phones and the answer to all has been no. The "iPhone killer" is Android - which has blown past Apple in smartphone sales and now owns the majority of that market. The same will happen with tablets.

The real story here is Apple vs Android...and you've completely missed it.