Amazon rumors of their coming “Hollywood” 9 inch tablet continue and it is looking as though they will arrive in September or October to enter the market. The question now is who are they going to be competing against and there is talk of the iPad. It seems that just about every major tablet entering the market is going to compete against the iPad, but in this case the Amazon tablet competition is going to be within the Android market. While many are talking about how the Amazon tablets are going to compete directly against the iPad, each time that they do that, the reality is that there is no impact to iPad sales. The Apple iPad has created is own market that no one has been able to break into.
The Amazon tablets, which will be released over a series of months and into early 2012, are going to really be competing against other Android tablets. All of the Amazon tablets are being reported as running the Android OS and that is the target market for Amazon. They have created the Amazon App Store to sell Android apps this year and have been very successful at doing that. By coming into the market with their own app store, they have an advantage over other Android tablet manufacturers with their own store and can promote that in association with their coming tablets.
For Amazon, competing against the iPad is not their target audience and they are looking to compete on price as they are not offering any earth shattering technology as compared to the iPad. Apple owns the leadership in the tablet market and has created an area that no one can break into. The Android tablet market is still being developed, but many of the competitors in the market are pricing their products as compared to Apple which places them at a disadvantage. With the Android market still growing in size, it provides an ability for Amazon and their tablets to grab a majority of the market within the Android tablets.
There are many tablets currently on the market and many other that are going to be released this year, most of which are going to have trouble competing against Amazon. They are going to create their own market space within the Android tablets that is completely separate from the market space that Apple has created for the iPad. By not competing against Apple, they have the ability to grow quickly and significantly as they enter the market.