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Thursday, 29 September 2011 - Kindle Fire may force Android tablet makers to cut prices |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? World Video Politics Politics Home Front Row Washington Politics Video Technology Technology Home MediaFile Science Tech Video Opinion Opinion Home Chrystia Freeland Felix Salmon Jack Shafer Breakingviews George Chen Bernd Debusmann Gregg Easterbrook Nader Mousavizadeh James Saft John Wasik Christopher Whalen Ian Bremmer Mohamed El-Erian Lawrence Summers The Great Debate Unstructured Finance Newsmaker MuniLand Money Money Home Analyst Research Global Investing MuniLand Reuters Money Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Life & Culture Health Sports Arts Faithworld Business Traveler Left Field Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Article Comments (0) Video Follow Reuters Facebook Twitter RSS YouTube Read Germany's Merkel faces biggest test in euro vote | 3:43am EDT Frantic calls, crying kids at scene of Jackson death | 28 Sep 2011 Bernanke says Fed would act if inflation falls 28 Sep 2011 Kindle Fire may force Android tablet makers to cut prices | 2:09am EDT Amazon ignites tablet war with Fire, takes on Apple | 28 Sep 2011 Discussed 111 Particles recorded moving faster than light: CERN 82 UPDATE 1-Particles found to break speed of light 63 Herman Cain wins Florida Republican straw poll Watched Rihanna's "inappropriate" outfit halts music video Tue, Sep 27 2011 Listeria outbreak kills 13 Americans Wed, Sep 28 2011 Massachusetts man charged with plotting attack Wed, Sep 28 2011 Kindle Fire may force Android tablet makers to cut prices Tweet Share this Email Print Related News Stocks drop, led by commodities on economic fear Wed, Sep 28 2011 Amazon pushes Barnes & Noble's back to the wall Wed, Sep 28 2011 Amazon unveils Kindle Fire tablet Wed, Sep 28 2011 RIM shares jump on Icahn stake talk Tue, Sep 27 2011 Euro zone hope revives optimism on Wall Street Mon, Sep 26 2011 Analysis & Opinion Polycom to plug communication gap Tech wrap: Amazon fights iPad with Fire Related Topics Technology » Media » iPad » Related Video Kindle Fire in Action! Wed, Sep 28 2011 Amazon CEO Jeff Bezos holds up the new Kindle Fire at a news conference during the launch of Amazon's new tablets in New York, September 28, 2011. Credit: Reuters/Shannon Stapleton By Miyoung Kim SEOUL | Thu Sep 29, 2011 2:09am EDT SEOUL (Reuters) - Asian technology companies came under pressure on Thursday to slash prices of their tablet computers after Amazon.com launched its Kindle Fire at a mass market-friendly $199. From Samsung Electronics to Sony Corp, major Asian tablet makers have ambitious plans to take on Apple, whose iPad is the gold standard in the booming market. With their me-too type of products priced almost at the same level as the iPad's starting price of $499, none of them have however been able to gain any significant market share from Apple. So far, Samsung has been seen as the most credible challenger to the iPad and some analysts suggest it could lose its No. 2 position to the eagerly anticipated Fire. The South Korean company's tablet marketing campaign has also stumbled in recent months due to Apple's legal attempts to ban Samsung's tablet sales in Australia, the United States and Germany, over patent infringement, among other claims. The Kindle Fire, while lacking many of the high-tech bells and whistles common on tablets from cameras to 3G wireless connection, may sound the death knell for a raft of devices based on Google Inc's Android operating system. "The pricing is critical to gain traction in the tablet market... Rival manufacturers have failed to attract consumers as they have matched the iPad's price point without matching its content offering," said Adam Leach, an analyst at research firm Ovum. "Amazon's retail-based business model allows the company to subsidize the device on the premise that consumers will buy more from Amazon, be that physical goods or its digital content." Samsung's Galaxy Tab, Sony's S tablet, Motorola's Zoom and many others from Acer Inc and Asustek Computer Inc all run on Android, which Amazon's Fire also uses and combines with its online store. By pricing the Fire at less than half the iPad -- yet stripping out costlier components and features -- the Internet retailer hopes to get the device into millions of consumers' hands and then into Amazon books, movies, music and other content. TOUGH FOR SAMSUNG Samsung's new tablet Galaxy 10.1 is priced roughly the same as the iPad. Even at that price, a slim profit margin of around 5 percent makes it difficult for Samsung to cut prices sharply, analysts say. Worldwide tablet shipments will more than triple to 60 million units this year and surge to 275.3 million units by 2015, research firm IHS iSuppli forecasts. Apple dominates the North American tablet market, with 80 percent of the 7.5 million units shipped during the second quarter of 2011, Strategy Analytics says. Analysts had expected Amazon's tablet to be priced around $250, roughly half the price of Apple's iPad, which starts at $499. Sony vowed in January to become the world's No. 2 tablet maker -- behind Apple -- by 2012 and Sony executives have since stuck to that ambitious claim. "We expect the Amazon tablet to... put pressure on the other non-iPad competitors as they are unlikely to be able to compete on price and value," UBS analysts said in a note. "At the $199, we believe Amazon's tablet has the potential to be disruptive to the market and, in particular, the non-iPad market...Other tablet vendors will find it difficult to match Amazon's price point." HP's firesale of its TouchPad tablet at $99 just six weeks after its launch created strong demand for its soon-to-be-killed product, a sign of just how critical prices are in the sector. (Editing by Anshuman Daga) Technology Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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