Why are vendors all scared of the Amazon Kindle Fire?

So the word on the street is that PC vendors like Hewlett-Packard (HP) and Dell reportedly plan to venture into the development of Microsoft’s Windows 8-based tablet PCs with the new models likely to be launched in the third quarter of 2012.

Here’s the funny part. It seems that Windows 8 is now ironically more attractive to these vendors because of Amazon’s new slate device – The Kindle Fire.

You know what? They’re damn right.

For most vendors, the $199 and sub $199 space is spoken for.

It has officially become fools gold to try and go after that space because Amazon will rule it.

Like I have said before, the $500 and above space is spoken for as well. Apple have planted the flag with the Ipad and really arent moving anywhere any time soon.

So what next? Well.. there’s the space inbetween i.e. the space between $200 to $499.

That seems to be the sweet spot where Windows 8 will occupy and quite frankly, it’s not a bad space to be in.

Funny, even when I gave site visitors a chance to set their price for Windows 8 tablets, that was the space that won.

There are two major caveats that should make the Samsungs and Motorolas and Microsofts of the world lose sleep.

1. Apple decide to manufacture a baby Ipad in the $200 to $499 space.
2. Amazon decide to manufacture a premium Kindle Fire HD in the $200 to $499 space.

That would be a severe blow to Windows 8 in general as it would further muddy the waters in the tablet space.

Like I always say, the consumer wins either way…

 

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