Next week Amazon will introduce its new Android-based tablet into the market next week. Currently, the Apple iPad has 84% of the tablet market share. Conversely, Android owns 14% of the market. Tablets that run Android OS, however, include tablets made by Acer, Samsung, LG, Blackberry, Dell, and Lenovo, none of which have received very high reviews. When Amazon enters the market with their new Android-based tablet, they have the potential to secure a premier position in the tablet market. While Apple will remain the front runner of the market, Amazon has the potential to be a second market leader.
Amazon can also be successful with their new tablet through profit pools. Amazon can choose to sell their tablet at an initial lower cost and then focus on selling Amazon Prime, Android Apps, Kindle Books, and other Amazon products. By focusing their attention on complements to the tablet itself, Amazon can get their foot in the tablet market by selling their tablets at a lower initial cost.
Sources:
http://www.pcmag.com/article2/0,2817,2393502,00.asp#fbid=rx1BA6ypvzC
http://mashable.com/2011/04/11/apple-tablet-market-gartner/
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