Amazon tablet tipped to threaten iPad’s dominance

Amazon could pose a serious challenge to Apple’s domination of the tablet market when it launches its iPad rival, according to analysts.

Amazon tablet tipped to threaten iPad's dominance

The retailer, which has reshaped the ebook reader market with its affordable Kindle, is rumoured to be launching its tablet this week and could mount a threat to the iPad, which has dominated since it launched in April last year.

With most rival manufacturers so far failing to find a price-quality balance to match the iPad, analysts said they believed Amazon’s retail savvy might mean a low-cost device that could fire the company’s sales of digital content and services, such as apps.

It’s a marketing tool to build a relationship with customers and sell them cloud services

“The real issue here is that, you know it is likely going to be good for consumers; is this going to be good for shareholders?” BGC partners analyst Colin Gillis said. “Knowing Amazon, it is likely to be a very aggressive price.”

In the same way Amazon’s Kindle reader was priced low to quickly get traction among readers, the company is likely to keep the price of its tablet low to attract users and sell other content and services.

“It’s a marketing tool to build a relationship with customers and sell them cloud services,” said James McQuivey, an analyst with Forrester Research.

McQuivey said the device also took aim at Barnes and Noble’s NookColor device, which features tablet functions.

Several technology companies like Research In Motion and Samsung have introduced tablets that sold poorly. Hewlett Packard pulled its TouchPad device before it really got off the ground.

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