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Apple isn’t sweating Kindle Fire, says Android fragmentation will drive consumers to iPad

Updated Dec 19th, 2018 7:34PM EST
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Several analysts believe Amazon has an imminent hit on its hands with its upcoming Kindle Fire, a $199 Android-powered tablet that features deep integration with Amazon’s many digital services. While Amazon’s new tablet will be available for just over six weeks in 2011, some analysts think the company could ship as many as 5 million Kindle Fire slates during the holiday quarter. Rapid adoption of that magnitude would certainly make the Fire the fastest-selling Android tablet of all time but according to Barclays Group analyst Ben Reitzes, Apple CEO Tim Cook and CFO Peter Oppenheimer aren’t worried. Read on for more.

Following a meeting with the pair of Apple chief officers, Reitzes delivered a note to investors suggesting that the company sees Amazon’s forthcoming tablet as good news for the iPad. The Kindle Fire’s low price point makes it accessible, but Apple believes it further fragments the Android ecosystem, which may cause consumers to flee to the iPad.

“While the pricing at $199 looks disruptive for what seems to be the iPad’s most important rising challenge, the Amazon Fire – it is important to note that it could fuel further fragmentation in the tablet market,” Reitzes wrote. “While compatible with Android, the Apps work with Amazon products. 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.”

Amazon will release its Kindle Fire tablet on November 15th, and a second Amazon tablet is expected to launch in the second half of 2012.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.