Join Amazon or go home, analyst tells Android tablet makers

Business

Android tablet vendors should follow Amazon’s lead and introduce lower-priced devices with Amazon content or exit the market altogether, one analyst recently suggested. Nomura International technology securities analyst Richard Windsor believes Amazon will dominate the cheap end of the tablet market with its new Kindle Fire, while Apple’s iPad will continue to own the high-end. Other tablet makers with iPad-like prices are still “living in denial,” Windsor said. “The main effect of the potential sea change triggered by Amazon could be a change in roadmap to cheaper products or possible tie-ups with Amazon,” Windsor argued in a recent research note. “With the advent of the Amazon Kindle Fire, many of the other tablet makers are in a bit of a quandary as they are left with expensive tablets without a comprehensive content offering.” Android 4.0 (Ice Cream Sandwich) will be detailed on Tuesday, October 11th during a press conference in San Diego and Windsor also believes the new OS may help tablet makers compete better with the iPad. BGR will reporting live from the event.

Read

28 Comments
  • http://twitter.com/cordial david carter

    ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST ANALYST 

    • http://twitter.com/GRZLA Grizzly Atoms

      OMG DA ANALYST SAYS SO IT MUST BE TRUE, THEY DID PREDICT THE IPHONE 5 AFTER ALL….

      List of analysts who predicted an iPhone 5: Ticonderoga, JP Morgan, Piper Jaffray, Deutsche Bank, and Morgan Stanley.

      Do us all a favor and don’t post anything from these analysts. I am sure you still will because you are looking for those checks. I guess you have to eat right?

      • Anonymous

        LOL… BGR drinks kool aid as well as Analyst blood. 

      • Fat Mams

        Analyst, there are these two companies called SAMSUNG and HTC, I know they are new in the tech space, but I think they look promising .. fucking idiot .. 

  • http://profiles.google.com/jshurak Jeff Shurak

    Android to analyst: Continue making totally wild and unfounded assumptions

  • http://twitter.com/mnguyea David Nguyen

    If they are so good can you tell me the winning number for next week lotto also since you can predict the future?

  • http://twitter.com/ramirphoto ramir sioson

    damn analyst talking out of their ass, seriously.

    that was the firs thing they thought also when android came out and look at it now. ofcourse other tablets running android OS will have a bit of a problem at first because IOS is dominating the market right now by a big margine but it just takes time and it will gain a bigger market share eventually. 

    if apple stops samsung from trying to sell its tablets in different countries i don’t see why the new line of galaxy tabs wouldn’t be successful.

  • Anonymous

    I think the analysts may be right this time.  I certainly don’t want to buy an Android tablet because the only thing I’d be able to do on it out of the box is surf the net.  The Android Market is getting stale quickly.

    • http://twitter.com/GRZLA Grizzly Atoms

      So the only thing Android tablets do out of the box is have an internet browser? Worst attempt at trolling of 2011.

      • BBA Brian

        Grizzly Atoms  – Troll Assassin

  • Anonymous

    Is part of the strategy to post articles that people need to dispute in the comments? I find myself going to a lot of BGR posts these days to see if anyone else is calling BS. If not enough people are, I leave the comment.

    On that note: BS.

  • http://www.youtube.com/user/TechDexs?feature=mhee Mr. Nelson

    Meh…next article

  • http://www.bsharitt.com/ Brandon Sharitt

    There’s two things wrong with the “Join Amazon” sentiment.

    1. While Amazon may let you ship with the Amazon App Store, Kindle App, and maybe a future Instant Video App, you’re not going to get the full integrated experience the Fire has and there’s no indication they’re going to  license their Android spin out the third parties.

    2. Amazon is selling the Fire on razor thin margins, and maybe even a loss at least to start. They make their money on the services not the device. If, and that’s a big if, Amazon does decide to work with other manufacturers and license out their Android flavor, other device makers would make hardly anything at all, unless Amazon did some generous revenue sharing. Even though the Fire should help Amazon rake in the content dough, I’m not sure if that’s a big enough take to share between Amazon and someone like Samsung or HTC.

  • http://twitter.com/kwyjibo1988 Sergey Ivaschuck

    Dear Analyst, first of all, wait until Kindle Fire is released. Then, if it’s successful, recommend a similar strategy to the rest of hardware manufacturers. Until then, please be quiet!

  • Corey Washington

    Everyone wants a cheaper tablet. That’s understandable. The problem is amazon has the resources to take a loss on the sale of their fire tablet at 200 bucks. They can do it because they know people are now forced to use their ecosystem and in return they will make any loss back plus profits from the sale of online storage, mp3′s, amazon prime/videos, and more. Most android tablet makers do not have this large infrastructure like amazon has and in return must make their profits on the actual tablet and leave the profits to google (market/ads).

    • Anonymous

      Amazon will have a ‘fire’ sale on their new color screen tablet. Hahahaha

  • http://www.youtube.com/user/TechDexs?feature=mhee Mr. Nelson

    Look Im an analyst as well: “Be prepared. Tomorrow will be Thursday.”

    • Anonymous

      But then you’d be correct. We all know analysts are never correct.

  • Anonymous

    I’m tired of all the analyst posts too, but this one made a valid argument we all already knew: stop pricing Android tablets close to the iPad, especially when you don’t have a viable & robust app ecosystem.

    I can’t remember which podcast mentioned it, but apparently Google has some control over the pricing of all Honeycomb (which isn’t open sourced) tablets. Hopefully with ICS, that’ll change. 

  • http://johnny-ray.com Johnny Ray

    if i had a nickle for every time android analysts were wrong i’d buy WebOS. *burn*

    In all seriousness i happen to agree that android tablets that don’t provide a compelling user experience priced at the same point as the iPad will continue to fail. Not saying the necessarily have to partner with Amazon but they do need to do something.

  • Anonymous

    So. Tablet makers must lose 10$ a console…in order to help sell Amazon content that they don’t profit share in…in order to compete? Isn’t this just he same as saying “Don’t make android tablets?”

    How bout this? Lets say there are more than just 1 market for tablets. The high end general computing is owned by Apple. Let’s avoid fighting there until Android’s more polished. There’s the low end razor blade selling Kindle Fires that lose money on each sale. Let’s avoid that–unless you really want to get into retail(no).

    There’s the 7 inch carputer market. Small…but passionate–> and generally affluent. 500 dollars fo a 7 inch tablet there that can do matroska and xvid video conversion natively? that’s a profitable market right there. Business kiosks? Logging in a terminal in a kiosk for a doctor or clerk and getting personalized information? The requirements for business are custom–too general for amazon or apple to go into.

    There’s a way to fight superior forces. You hole up in siberia/shangrila/xinjiang/taiwan and you wait for oppurtunities, in this case, app store maturity.

    What it means is that tablet makers must all have software divisions that can uniquely lockdown their software to their operating system. That means WEBOS. That means QNX and BADA. That means Honeycomb never being released as open source.

    So i don’t see any of the Chinese manafacturers doing well in the tablet space. Nor samsung. The ONLY one with any experience doing dedicated applications for dedicated hardware are Microsoft(Zune, Xbox), Amazon(Kindle) and Blackberry(BES). Blackberry are filled with morons and rapidly hemorrhaging any good software guys they have left. Amazon is on Fire(lol). Microsoft still thinks they can win with the general computing model. They need to make their tablet run their xbla apps and run everything off that xbla sdk.

    I still think the TEXT heavy category BAR on top of Metro UI is unusable. You never know when what’s the end of the line. It’s like homescreens without the little indicators telling you which homescreen your on.

  • Anonymous

    There’s always a middle ground on something; the question is will it be big enough to support much of an ecosystem?  Can Amazon really sell enough of these to keep their price point around forever or at least a long time?

  • Anonymous

    The ASUS Transformer sold well, and still does – despite it not being el cheapo.

  • http://twitter.com/Xevilious Xevilious

    “expensive tablets without a comprehensive content offering”

    I understand his (flawed) point, but I can’t help but wonder if this analyst has ever actually used an Android tablet.  I mean, even most Amazon content is available on Honeycomb tablets.  

    Besides, the Nook Color has been available at a lower price point for quite some time now, and people are still buying Galaxy Tab 10.1s.  I think it comes down to flexibility.  The Nook Color does what it was intended to do but little more.  Same can probably be said for the Fire.  

  • Anonymous

    Stick to reporting on the Financials not latest technology trends, consumers tell Analysts.

  • Anonymous

    I wonder whether Nomura International technology securities have a large poistion in Apple? Why else would they predict(want) IPad to monopolize the tablet market 

  • Whoster69

    I disagree.  Granted the iPad is the best device on the market (and I’m no fan of Apple).  This doesn’t mean other companies can’t compete with them.  They just haven’t produced a product yet that can.  As the Android OS matures, I think we will start to see some devices that are as good or better than the iPad, but we aren’t there yet.

  • http://www.facebook.com/profile.php?id=1295987161 Ralph Villaver Cuevo

    If Amazon will sell the kindle only in their online store, this will be not a hit..Most of consumers in our country would prefer buying on malls and stores. Amazon should have Amazon Stores all over the world just like apple.

blog comments powered by Disqus