Tim Cook and Peter Oppenheimer, Apple’s Chief Executive Officer and Chief Financial Officer, respectively, have expressed a lack of concern about Amazon’s Kindle Fire competing with the iPad, according to Ben Reitzes of Barclays Capital. The reason? The new Kindle will contribute to the fragmentation problem that has plagued the Android platform.
The Kindle Fire was announced a few weeks ago with much talk about how it could finally be the tablet that gives the iPad a run for its money. It is slated to launch on November 15 (available for pre-order now) and its $199 price point is considered to be a key point in its favor. The Kindle Fire will run a customized version of Android that allows it to be compatible with Amazon services. And, it is this feature that Apple is banking on. According to Reitzes, “The more fragmentation, the better, says Apple, since that could drive more consumers to the stable Apple platform.”
Reitzes also noted that he believes that Apple will eventually lower the price of the iPad to make it more competitive. However, this will not occur at the expense of quality.
It will certainly be interesting to see how this battle plays out. I, for one, will be keeping a close eye on the success of the Kindle Fire following its launch in a couple of weeks.
Source: Apple Insider