Tag Archives: Kindle Fires

Should Google Android Be Broken Up?

By Evan Niu, CFA, The Motley Fool

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According to Google Chairman Eric Schmidt, the search giant has clearly won the mobile platform war. That assertion is based in part on the sheer fact that Android is by far the dominant mobile operating system on the planet. That’s indisputable.

Over the past two years, Android doubled its global market share and now powers 70% of all smartphones sold worldwide. That rise is incredible, any way you slice it.

Source: IDC.

The thing is that while Google likes to tout those legitimately impressive headline figures, saying there are now more than 1.3 million Android devices activated every day, the truth is that there are currently so many different distinct Android camps that lumping them all together is somewhat specious where it counts.

Should Android be broken up?

A subtle admission
Google has seemingly acknowledged this. The search giant subtly changed its methodology for measuring version distribution, which resulted in meaningful changes in its reported statistics. The aging Gingerbread fell from 44.2% to 39.8%, while the newest Jelly Bean soared from 16.5% to 25%.

Android version distribution. Source: Google.

The new method now measures the devices that visit the Google Play store instead of including all devices that check in to Google’s servers (i.e., activations). Google says “new data more accurately reflects those users who are most engaged in the Android and Google Play ecosystem.”

Translation: Google wants to emphasize its own Android camp to developers, while minimizing the importance of Amazon.com‘s fork as well as all the Chinese OEM forks out there. Google uses the aggregate figures when they make for good headlines, but it concentrates on its sanctioned Android versions when it matters strategically.

Google doesn’t directly benefit from the different forks out there, and Amazon’s is by far the most successful in tablets. The e-tailer was the No. 3 tablet vendor in the fourth quarter, with 11.5% of the market, and none of those Kindle Fires feed into Google Play. That’s what Amazon’s Appstore for Android is for.

Facebook just launched its Home software suite, which I consider more of a “half-fork,” since Home still feeds into Google Play even though it emphasizes Facebook’s social services over Google’s. From the social network’s perspective, Home is still the right strategy, since Facebook knows better than to compete on a primary platform level.

Even BlackBerry is now piggybacking on Android’s dominance, using ported Android apps to pad its app counts. BlackBerry devices still rely on BlackBerry World for their app fix, and developers have to manually port their apps to the platform to run inside an emulator, so those smartphones were never getting included in Google’s figures. BlackBerry has made some progress getting developers to go native, but the company serves as another example of a third party riding Android’s success with no benefit to Google.

You can’t have one without the other
Device fragmentation has long been cited

From: http://www.dailyfinance.com/2013/04/14/should-android-be-broken-up/

Why Is Amazon Dropping Kindle Fire Prices?

By Adam Levine-Weinberg, The Motley Fool

Filed under:

Last week, Amazon.com announced that it was reducing the price of its Kindle Fire HD 8.9-inch tablet from $299 to $269, while also cutting the price of the LTE version from $499 to $399. In the press release, Amazon stated that the launch of those tablets in Europe and Japan allowed the company to increase production volumes and therefore lower prices. However, this announcement should be taken with a grain of salt. It is much more likely that weak sales of the 8.9-inch Kindle Fire devices led to the price cut. While Amazon has generally tried to sell its tablets at cost, the 8.9-inch devices were previously priced to be profitable. With the failure of that strategy, Amazon seems to be reverting to its primary strategy of pricing tablets at cost and hoping to sell content at a profit.

Who wants a $500 Kindle Fire?
Other vendors, such as Motorola (Xoom), BlackBerry (Playbook), and Hewlett-Packard (TouchPad), have previously tried to compete with Apple in the upscale tablet market. Each of those would-be iPad competitors flopped at the $499 price point. Even at greatly reduced prices, none of these tablets were able to come close to the iPad’s sales volume.

Despite this harsh lesson, Amazon decided to attempt a $499 tablet last year. The highlight of Amazon’s high-end tablet was a 4G LTE modem, and an option for customers to buy a discounted $49.99 basic data plan for the first year. Amazon also introduced an 8.9-inch Wi-Fi version of the Kindle Fire HD for $299. The Kindle Fire HD 8.9-inch began shipping on Nov. 15, with the LTE model shipping the week thereafter.

As early as December (one month after the launch of the Kindle Fire HD), analysts began warning that demand for the 8.9-inch Kindle Fire models was very weak. One analyst estimated that Amazon sold 6 million tablets in the holiday quarter, with most of those being the $199 Kindle Fire HD 7-inch. (Amazon has not released official sales statistics for the Kindle Fire tablets.) While some analysts had expected the new Kindle Fires to steal market share from Apple, the reverse seems to have occurred. Apple introduced the iPad Mini shortly after the Kindle Fire HD launch, with a starting price of $329. With a 7.9-inch screen, the iPad Mini is in between the two Kindle Fire HD size options. Apple reportedly expects to sell 55 million iPad minis in 2013. The iPad Mini’s runaway popularity suggests that customers comparing it to the Kindle Fire HD 8.9-inch are overwhelmingly willing to sacrifice on screen size (and pay an extra $30) to get the iPad’s superior overall experience.

Enter price cuts
By cutting its prices to $269 and $399 for the Wi-Fi and LTE 8.9-inch tablets, Amazon will put a little more distance between itself and Apple, price-wise. As analyst Colin Gillis of BGC Partners recently argued, the price cut may be …read more
Source: FULL ARTICLE at DailyFinance