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Amazon's Android Kindle tablet: coming on Wednesday to New York?(Guardian Web Via Acquire Media NewsEdge) Amazon has sent out invitations to a press conference in New York next Wednesday at which it is expected to unveil a tablet based on Google's Android operating system. Analysts say that the offering, from the company which revolutionised electronic reading with its Kindle e-reader, could provide the first serious challenge to Apple's iPad. The company declined to comment on what will be released but analysts were confident that the world's largest Internet retailer will use the tablet computer to expand in mobile commerce and sell more digital goods and services. "Wednesday is tablet day," BGC partners analyst Colin Gillis told Reuters. Some details of the tablet have leaked out via suppliers and the press: it is expected to have a 7in touch screen and run Amazon's own version of Android. While there are many Android tablets on sale, none has been able to compete effectively with Apple's iPad, of which about 29m have been sold since its launch in April 2010. A report on Techcrunch earlier this month suggested that it will also be called Kindle. "The real issue here is that, you know, it is likely going to be good for consumers; is this going to be good for shareholders?," Gillis said. He wondered whether Amazon would price the tablet below those of rivals - and thereby do little to boost margins. "Knowing Amazon, it is likely to be a very aggressive price," Gillis said. Rather as the Kindle e-reader was priced low to quickly get traction among readers, Jeff Bezos is expected to keep the price of its tablet low to attract users and sell other content and services, one analyst said. "It's a marketing tool to build a relationship with customers and sell them cloud (computing) services," said James McQuivey, an analyst with Forrester Research. Techcrunch's report said the new Kindle will have be a 7in screen device with full colour and cost $250, well below the price of the least expensive iPad. Earlier this week Amazon made its own Android software store available internationally, a necessary precursor to the launch of its tablet as it would allow people to download apps and e-books for it directly. Amazon is expected to run its own "app store" separately of the one run by Google, and to maintain its own content purchasing system. Robert Baird & Co analyst Colin Sebastian said in a note last month than an Amazon tablet would be a "game-changer." Sebastian forecast the device could sell 3m units in its first year. The tablet could pose a major threat to Apple because of the Kindle's popularity and the movie and music services Amazon sells. Forrester's McQuivey said the device also takes aim at Barnes & Noble Inc's NookColor device, which hit the market last year and features tablet functionalities. Several technology companies like Research In Motion and Samsung have introduced tablets that have sold poorly. Hewlett Packard Co announced in August it would abandon its TouchPad tablet. Amazon shares finished the day up 0.2 percent at $223.61 on Friday on Nasdaq. The stock had traded as low as $219.06, but rallied as invitations to the media event began arriving. (c) 2011 Guardian Newspapers Limited. |