Differentiator for Kindle Fire and iPad 2 is price

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The tablet market is a fickle one due to the fact that there is just so much choice, and Amazon has now made things much tougher with the announcement of their new Kindle Fire. As with all new tablets they will be compared to the iPad 2, but for us the differentiator will be in the price and not with the hardware or other features.

Apple seems to have the perfect balance with price, hardware specs and also apps. Other tablets can nail one or two of these, but never all three. Amazon might not be able to compete with the iPad 2 in terms of hardware, but it does have two other things going for it, and that is the access to all of their services and also a cheap price tag – something that the Xoom and Galaxy Tab 10.1 has failed on.

Tech Crunch has been speaking to Amazon’s CEO Jeff Bezos, and he is under no illusion that the Fire is in the same league as the iPad 2. This is why the online retail giant will do what they have done with the Kindle eReader, and that is offer the device at a ridiculous price when it is released sometime in November.

The iPad 2 starts at $499, and many tablets have failed to beat that price, and those that have failed miserably. You can imagine our shock when we learned that the Kindle Fire tablet would cost just $199. Okay, so let’s get real for one moment, it will not put the fear up Apple due to the device being a little slow and lacking app support, but the cheap price could make it become the biggest competitor for the iPad.

Consider this, as we are now in a double dip recession, what would you rather choose the iPad for $499 or the Kindle Fire for $199, and it is this dilemma that Amazon is hoping consumers will soon face?

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