Amazon to Apple: ‘Prepare for War’ in Tablet Market

Online retailer giant Amazon has proved itself as a strong competitor against Apple in the worlds of digital books, music and mobile apps. Now, rumors have the tech community abuzz that Amazon is planning to enter the tablet market as early as October, and industry experts believe the Android-powered device might be the only tablet capable of competing with the iPad.

As we reported a couple weeks ago, HP stopped production on its TouchPad, and lowered its price to $199 for the 16GB and $149 for the 32GB to clear excess inventory. RIM’s Playbook and Motorola’s Xoom gather dust as Apple’s iPad remains the dominant tablet seller. But Amazon’s strong brand recognition, cloud services and Kindle line has the potential to “completely disrupt the status quo,” said Forrester analyst Sarah Rotman Epps in a blog post. If Amazon’s tablet is priced right, at less than $300, and there is enough supply to keep pace with orders, the company could sell 3-5 million tablets in the fourth quarter alone, wrote Rotman Epps.

Given Apple’s policy changes that take a 30 percent cut from the sale of e-books through Amazon’s iOS apps, the relationship between the two companies will become even more strained. While it is likely that Apple will remain the top seller, Rotman Epps believes that with a smart launch strategy, Amazon’s entry into the tablet market will prompt Apple “to prepare for war.” She also notes that the meat and potatoes of Apple’s revenue comes from hardware, making it “vulnerable to a company, such as Amazon, that isn’t seeking profit from hardware sales.” With Android and the potential for several different OEMs to produce their own versions of Amazon’s tablet, Amazon can easily become “a strong second to Apple’s iPad,” said Rotman Epps.

Forrester also noted that if Amazon’s Android-powered tablet “sells in the millions, Android will suddenly appear much more attractive to developers who have taken a wait-and-see approach.” If you are interested in entering the billion-dollar app market, consider Blue Interactive Agency. Now offering mobile application development, as well as custom software development and other mobile marketing solutions, Blue is always expanding its service offerings. Call today for more information!