Apple Believes That Kindle Fire Is Good Because It Causes More Android Fragmentation
Executives at Apple Inc. (NASDAQ:AAPL) said that the Kindle Fire tablet device manufactured by Amazon.com, Inc. (NASDAQ:AMZN) and running on Android could be good for them. Barclays analyst Ben Reitzes met with Apple CEO Tim Cook and CFO Peter Oppenheimer.
One of the Apple executives said:
While the pricing at $199 looks disruptive for what seems to be the iPad’s most important rising challenge, the Amazon Fire – it is important to note that it could fuel further fragmentation in the tablet market—given it represents yet another platform. While compatible with Android, the Apps work with Amazon products. The more fragmentation, the better, says Apple, since that could drive more consumers to the stable Apple platform. We believe that Apple will get more aggressive on price with the iPad eventually but not compromise the product quality and experience.
Since the Amazon Fire is based on a customized Android, the apps may look out of place. Eventually developers will adapt and customize their apps to meet the specifications of the Kindle Fire. Apple may lose a lot of potential customers because of the Kindle Fire’s price, especially during the holidays. But we won’t know until the post-holiday season numbers come out.@amitchowdhry or on Google+ at +AmitChowdhry