Report: Amazon to Enter Tablet Market, Places Order in Taiwan

| Rumor

Amazon is ready to take on Apple’s iPad head-to-head, and has placed orders for full tablet devices, according to Taiwan newspaper DigiTimes. Amazon has worked a deal with Quanta to manufacture the devices, which will feature touch panels with Fringe Field Switching (FFS) technology made by E Ink Holdings.

Amazon could begin shipping the device as early as the second half of 2011, and DigiTimes said orders during the “peak season” (i.e. Christmas) could reach as many as 700,000-800,000 units per month. If so, that would make Amazon’s entry into the iPad-defined market the second most popular tablet, as no iPad competitor is known to have sold even 300,000 units in total, let alone in a month.

The report, which was attributed to unspecified upstream component makers, does not specify which operating systems Amazon’s device would run, but it doesn’t take a rocket scientist to tie this news to the launch of Amazon’s Android Appstore, which was announced in March (followed by a swift lawsuit from Apple over its “App Store” trademark). The company began trying to recruit developers from the ranks of iOS developers in March, as well.

Amazon was an early leader in the tablet form factor as a media device with its Kindle reader, a device that is well suited to reading books, magazines, and other text, but little else. It seems a safe assumption that Amazon is bringing a touch panel device to market in an attempt to offer the kind of overall experience Apple brings to market with the iPad, including the ability to run apps, play videos, view images, and more.

So far, no iPad competitor has gained any traction in the market, but Amazon brings a couple of weapons to bear on this market enjoyed by no other competitor, even Google. For one thing, Amazon has existing deals in place to sell music, ebooks, and stream TV shows and movies. The company also has millions of existing customers around the world who regularly visit the company’s Web site to buy things.

If the DigiTimes report is accurate, Amazon’s aggressive ordering plans for its tablet could indicate that it sees potential success that other Android makers haven’t found.

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8 Comments Leave Your Own

CandTsmac

nobody has seen it or its OS and yet it is projected to sell 700,000 units. LOL.

i want that guys job.

Lee Dronick

I can visualize the Amazon webpage now

What Do Customers Ultimately Buy After Viewing This Item?

iPad
iPod Touch
iPhone
iMac
MacBook Pro
MacBook Air
MacBook

RonMacGuy

Hey guys, you obviously didn’t see that this thing will have Fringe Field Switching (FFS) technology.  Not sure what that means, but it sounds pretty darn impressive!!

grin

John Molloy

Sir Harry,

While funny, because Amazon have no agreement to sell the iPad from Apple it will never be very high on the tablet rankings. Only those scalpers who list it with heavy markup are able to sell it there.

I have seen many Android adherents use this as an excuse to say that the iPad is not doing very well because they don’t realize why.

Lee Dronick

While funny, because Amazon have no agreement to sell the iPad from Apple it will never be very high on the tablet rankings.

Thanks, it didn’t dawn on me that Amazon wasn’t selling the iPad directly, that they list it as “Available from these sellers.”

Hey guys, you obviously didn?t see that this thing will have Fringe Field Switching (FFS) technology.? Not sure what that means, but it sounds pretty darn impressive!!

100% buzzword compliant

Fringe Field Switching

Nemo

Fringe Field Switching (FFS) has been around since 2003, with an advanced version that permits viewing in bright light appearing in 2007.  Apple certainly had a look at FFS but went with IPS instead. 

As for Amazon’s tablet running Honeycomb or its successor, I am sure that, if Amazon is going to use Android, it hopes that Google will have squashed the bugs in Honeycomb or its successor that have earned such bad reviews for the Honeycomb-based tablets.

jfbiii

If the tablet isn’t a hardware fail-on-arrival Amazon has the marketplace to seamlessly fill the biggest hole that other tablets can’t. I think it’s pretty obvious that they’re making enough money across other business units to bootstrap kindle into a full tablet without the need for it to make money immediately. But the marketplace is a huge difference.

Not only do they have a marketplace to back them up and an installed user base of tens (hundreds) of millions of credit cards…they also have a dev agreement that allows them to pay developers either 70% of retail (determined by Amazon) OR 20% of suggested retail (set by the developer), whichever is greater. Developers may not set the suggested retail price for their apps higher than it sells for anyplace else. I think this could put upward pressure on app prices in other stores eventually.

I like Competition

I know everyone who has posted on this so far put their tablet under the pillow for fear it might turn into a kindle or something else, they would trade their mother for apple stock and life began with Steve Jobs birth, but for the rest of reality competition is a good thing and we should all be rejoicing with it. I don’t want the Apple empire to squash any competition. Quite the opposite, I want apple to succeed but I want the underdog too, why competition is good, but so are jobs. Not steve the ones that put food on the table around the world.

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