Wednesday, May 4, 2011

Beyond the Kindle: An Amazon Tablet Rumor Roundup

Is Amazonhttp://mashable.com/2011/05/03/amazon-tablet-rumor/ readying a tablet? Rumors of such a device are making the rounds and the idea of an Amazon tablet is plausible, considering that the company already has an ereader — a kind of tablet lite — in the Kindle. Meanwhile, Barnes & Noble’s recent expansion of the Nook Color’s capabilities, taking it from ereader to tablet, suggests Amazon could do the same.
Among the rumors circulating in the blogosphere:
  • Samsung is building the tablet. This idea was posited by Peter Rojas of Gdgt, who notes that he’s “not 100% certain” about it. However, Rojas does seem certain that the device will be Android-powered — but like the Nook Color, it may use that OS “as a base upon which to build a totally customized experience that tightly integrates Amazon services.”
  • Quanta Computer is the manufacturer. This notion, put forth by DigiTimes on Tuesday, cites Taiwanese sources who say Quanta has received OEM orders from Amazon for a tablet. Quanta is expected to start shipping as soon as the second half of 2011, according to the report. Amazon’s motivation, the report says, is to capture more of the international market. Having a tablet will let Amazon cut the Kindle’s price and use the cheaper device to pursue foreign markets. Meanwhile, the new tablet will vie with the iPad 2 in the U.S.
Rumors aside, would a tablet make sense for Amazon? Writing in her blog back in March, Forrester analyst Sarah Rotman Epps made a compelling case for an Amazon tablet. Rotman Epps cited research showing more consumers would consider buying a tablet from Amazon (24%) than Motorola (18%). Plus, Amazon could take advantage of the fact that Apple has alienated publishers with its stringent rules regarding ebooks.
Finally, Amazon might be able to sell the device for below cost in the hopes of making it up by selling content, as it does with the Kindle, giving the device price parity or perhaps an advantage over iPad 2 pricing. “We see a market that’s ripe for disruption by Amazon in particular,” wrote Rotman Epps.

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