Amazon has had some pretty good commercials for the Kindle, and they’re usually very good at pointing out the Kindle’s big advantages as an e-reader. This new ad is no different and it points out not only to the Kindle and Kindle Fire’s main advantages, but also pokes fun at the iPad for costing more than “three Kindles”. I really enjoyed this ad, and I hope to see more of them. They remind me of Apple’s Mac vs PC ads, which were always funny.
The Kindle Fire has a clear advantage over the iPad thanks to its $200 price point. This doesn’t mean Apple’s sales will necessarily fall because of it, because Apple can still try to sell the iPad in many countries and to many people who don’t really care about the price difference. The market potential is much bigger, so Apple can grow alongside many other competitors (for now).
The problem for Apple is that their sales won’t be as big as they would’ve been otherwise (hard to measure this), and also that at this price point, the Kindle Fire and other Android tablets in general could take the market leadership from Apple (again), and grow much faster than Apple. This poses a problem for Apple because at the point of market saturation (a few years from now), Apple won’t be the dominating platform. And of course they would like to be the dominating platform (who wouldn’t?).
So while Apple will be doing just fine sales wise for now, it’s not exactly an ideal scenario for them that Android-based tablets are quickly catching up to its market share.