“My assessment of the Kindle Fire is based on the two attributes which Amazon highlights as the key selling points which offer a basis of differentiation and potential for asymmetric competition: a low price and a new browsing model. I believe that these two attributes result in two opportunities: one for low end disruption and another of new market disruption,” Horace Dediu writes for Asymco. “I reject the first and tentatively support the second (in this post I will make the case against the low end disruptive potential and use a second post to make the case for it being a new market disruption).”
“The Fire will not have the opportunity to disrupt the iPad or tablets in general. Amazon sees the hardware and software of a device as a commodity and the content and its distribution as valuable. This assumes that the device is ‘good enough’ and will not require deep re-architecting or that new input methods can be easily absorbed,” ,” Dediu writes. “In short, they see the tablet as at the end of its evolutionary path. Apple sees the exact opposite. The iPad is 18 months old, and as they say in the ads, they see it as only the beginning.”
Much more in the full article – recommended – here.