Amazon Could Disrupt Apple's Tablet Dominance
Source: John Letzing
Amazon.com Inc. (AMZN) could disrupt a tablet market dominated by Apple Inc. (AAPL) if the online retailer is willing to sell its own, widely-anticipated device at a loss, according to research published Monday.
Forrester Research analyst Sarah Rotman Epps wrote that while "Amazon taking on Apple is a bit like David taking on Goliath," if Amazon proves willing to sell its tablet relatively cheaply and leverage its brand and surplus of online content, it could make a significant mark.
Specifically, if Amazon prices the as-yet-undisclosed tablet at less than $300, the Seattle-based company could sell up to 5 million units in the fourth quarter of this year, the analyst wrote.
Apple currently sells versions of the iPad for prices ranging between $499 and $829.
The Wall Street Journal has reported that Amazon could release its tablet as soon as October.
Representatives from Amazon and Apple didn't immediately respond to requests for comment.
Rotman Epps acknowledged in her report that Apple's "lead in the tablet market looks invincible," with nearly 29 million of its iPad tablets sold to date.
According to data recently published by IHS iSuppli, global tablet shipments are expected to rise to 60 million units in 2011, a sharp increase from the 17.4 million last year.
IHS predicted that Apple's iPad alone will account for 44.2 million tablet shipments this year. "All the momentum in the media tablet market is with Apple right now," IHS analyst Rhoda Alexander wrote in the Aug. 24 report.
Rivals have struggled to match the iPad's success.
Hewlett-Packard Co. (HPQ), for example, recently announced that it would stop trying to sell its own tablet, called the TouchPad.
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