Amazon Just Disrupted The Tablet Market

| About:, Inc. (AMZN)
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I want one.

I just listened to Jeff Bezos give the marketing speech of his career.

And again, I want whatever he's selling - Kindle Fire, Kindle Paperwhite - I'll take one of each. The presentation was just that good.

If you missed it, you can check it out on live blog here.

But what Bezos is really selling is far bigger than a tablet. He's selling a relationship. Amazon (NASDAQ:AMZN) is willing to sell its tablets below cost enticing customers in; the goal is to make money only when they use them. He's looking for a customer for life, one that will purchase movies and books at Amazon. This is a disruptive strategy, one that upends the tablet market. In one fell swoop, Amazon's Kindle Fire underpriced Apple's iPad while delivering what appears to be an exceptional tablet.

From the product intro:

During the presentation, Bezos took direct aim at Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG), differentiating its tablet features. But most important, he blew away his competitors on pricing. For example, the 8.9 Kindle Fire 4G LTE 32 GB storage will market at $499 versus the $799 equivalent iPad. Amazon's throwing in a 12-month data plan for $50 vs Apple's $230 (250 MG per month, 20 GB Cloud Storage, $10 Appstore Credit).

If these tablet are as good as they look, Apple's got a problem.

This is one heck of a launch.

The tablet world just turned upside down.

Disclosure: I am long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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