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Analysts: New tablet from Amazon will compete with iPad

Amazon.com, which revolutionized reading with its Kindle reader, is expected to introduce a tablet computer this week, which analysts say will seriously compete with the market dominance of the Apple iPad.

On Friday, Amazon invited journalists to a press conference to be held this Wednesday in New York, refusing to provide details of the event.

But analysts are confident that the world's largest online retailer will present its long-awaited tablet at a press conference, which will expand the possibilities of mobile commerce and the sale of digital goods and services.

“Wednesday is tablet day,” BGC analyst Colin Gillis told Reuters.
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Amazon's “tablet” is expected to be a serious rival to Apple’s iPad; A total of 29 million tablets have been sold since their sales began in April 2010.

“The real problem here is that, you know, it will definitely be good for consumers; but will it be good for shareholders? ”asks Gillis. He wonders if Amazon will appreciate its tablet lower than that of its competitors - and, thus, will only slightly increase the sales margin.

“Knowing Amazon, the tablet price will be very aggressive,” said Gillis.

In much the same way as the Kindle bucket reader was rated low in order to attract customers, the company would keep low prices on its tablet, in order to interest consumers and at the same time sell side content and services, says one analyst.

“Building certain customer relationships and selling cloud services to them is a common market tool,” says John McQuivey, an analyst at Forrester Research.

Although Amazon does not even comment on the very existence of the tablet, TechCrunch blog this month said that the new tablet from Amazon will also be called Kindle.

The device will have a 7-inch full-color screen, touch-screen, Android platform and will cost $ 250, which is much cheaper than the youngest iPad model.

Analyst Robert Baird & Co, Colin Sebastian, last month wrote in his note that the new tablet from Amazon will be a game changer. Sebastian's forecast is 3 million purchased “tablets” from Amazon in the first year of their sale.

The new device from Amazon could seriously compete with Apple because of the popularity of the Kindle book reader and the services of the corporation that sells music and movies.

Forrester McQuivey also said that Amazon's new tablet will also target the success of the NookColor E-book reader from Barnes & Noble Corporation, which entered the market last year and includes some of the features of a tablet computer.

Technology companies, such as Research in Motion or Samsung, have launched “tablets” that sell poorly, and recently Hewlett & Packard Co announced they would stop selling their tablet.

Amazon shares on the Nasdaq ended last Friday with a 0.2% increase to $ 223.61. Shares were trading at a price of $ 219.06, but entered the rally as guests of the Amazon press conference began to arrive.

Source: https://habr.com/ru/post/129179/


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