Amazon announces $199 Kindle Fire tablet

Posted on Wednesday, September 28th 2011 at 3:36 p.m.

Amazon waded into the tablet market today , announcing the $199 Kindle Fire .  The Fire is a 7-inch tablet running a custom Android OS.  Amazon has started taking pre-orders and will ship the device in mid-November.

The Fire appears positioned to appear as the high-end version of the existing Kindles, so it will not take on the iPad’s 10-inch form factor directly.  However, with its $199 price point, and with the massive content delivery power of Amazon, the Fire could take a lot of sales away from Apple this holiday season.  Apple will probably counter that the Fire is an inferior device, but I see a big segment of the population who would jump on this device quickly.  Depending on the success of the Fire, we may see a 10-inch version optimized for magazine delivery down the road.

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