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Kindle Fire is the brand name of a tablet produced by Amazon.com. It has a seven-inch display and runs a customized version of Google's Android OS.
The Kindle Fire lacks many of the features commonly found on more expensive tablets, such as embedded front- and back-facing cameras or microphones. Its inter-connectivity is limited to Wi-Fi, it has no 3G and it is limited to 8 GB of storage. However, it is priced much lower than its competitors.
The Kindle Fire's features include:
With the introduction of the Kindle Fire, we are seeing two different marketing theories in play.
Most other players in the market have a limited market percentage, with perhaps the Samsung Galaxy Tab line as an up-and-comer. All of these device manufacturers must make their profits on the sales of tablet units.
Apple and Amazon, on the other hand, are able to sell apps, music, book and movie content for their devices as a second source of revenue.
Despite these similarities, Apple has a very different marketing approach. It aims to price its products as high as the market will bear, while Amazon is willing to sell its tablets as a loss leader, knowing it can make big (and perhaps better?) money selling apps and content.
These two giants in the marketplace could make it exceedingly difficult for other manufacturers to make a go of it by just selling hardware.