Why Apple's iPad and Amazon's Kindle Fire should be tablet-buds

I spent this past weekend in New York City, where iPhones and iPads rule the subways, streets and most Starbucks. I also had a surprising number of conversations about the Kindle Fire.

 

The Kindle Fire has attracted mainstream consumer interest in a way that no other iPad competitor has managed. Clients regularly ask me about it, and it's sure to be in many Christmas stockings later this month.

That might sound like bad news for the iPad. After all, the Kindle Fire is so cheaper much cheaper it surely has to steal sales away from the iPad.

 

I don't agree, in fact I believe the opposite is true. I believe the success of Amazon's Kindle Fire will validate the tablet market and draw more customers to Apple's iPad. It's natural, especially in the technology world, to view a successful disruptive entrant as destructive to competitors. In particular with regard to Apple products, the world The Kindle Fire could be good news for both Amazon and Appleseems to always be looking for the new gadget to will be the iPhone slayer or iPad killer. But in this case the Kindle Fire will help the iPad, just like the iPad has already helped the Kindle Fire.

 

Before the iPad was launched, there was no mainstream tablet market. Consumers did not understand what they would do with a tablet. The iPad has been successful because it married quality hardware, highly capable yet accessible apps and strong content partnerships at the right price point.

 

Competing tablet manufacturers have failed to combine these factors successfully, which is why their products have not sold in meaningful quantities when compared to the iPad.

 

I believe this harmed competitor sales as well as iPad sales. Why? Well some consumers hear about the iPad and dip their toe in the market by purchasing a cheaper or less developed product. They're concerned that the iPad is a flash-in-the-pan and that the tablet market will come and go. In many cases they have a poor experience and confirm their belief that the tablet market is all hype and no benefit. They regret their purchase and don't want to get burned again. So they move to the sidelines and probably tell their friends about their experience. This is bad news for future tablet sales across all products.

 

Enter the Kindle Fire. Finally we have a non-iPad tablet with strong content partnerships, and a hardware and software experience appropriate for the Fire's price point. Consumers will buy it in large numbers as a result, and they will probably have a good experience. When they're ready to get something more capable they will probably look towards either the iPad or perhaps a future premium version of the Fire.

 

Either way both Apple and Amazon both win. The iPad introduced tablets to mainstream consumers and the Kindle Fire confirms to them that this market sector is valid and here to stay.