Jag Venugopal's Blog

October 1, 2011

Here’s how the Kindle Fire will hurt the iPad

Filed under: Digital Living — Jag @ 9:57 pm

Much ink has been spilled on the features of the Amazon Kindle Fire, and whether it is an iPad killer or not. Some have said that it is a media consumption device and not a general tablet like the iPad. Others have called this the one tablet that will compete with the iPad.

I think most observers have missed the point. Its not about whether there is feature parity between the two or whether the one or the other is better at any random feature. Where the Fire hurts the iPad big time is that it has now anchored $200 as the price of a tablet in the consumer’s mind. While a year ago, the iPad was touted as a “magical device at an extraordinary price”, today, the perception is that it is 2 1/2 times more expensive than the Fire, which by all accounts, will be a competent tablet (with a limited feature set). That, ultimately, is the damage that the Fire will do to the iPad. People will look at the iPad and wonder about whether its worth the 2.5x premium over the Fire.

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