Apple CEO Tim Cook is not concerned about Amazon’s Kindle Fire taking any iPad market share. During the Apple earnings call on Tuesday Cook spoke about the Kindle Fire and competition in general in the tablet market:
We’ve seen several competitors come to market to try to compete with the iPad. Some had different form factors, different price points. And I think it’s reasonable to say that none of these have gained any traction thus far. And in fact, as all of those competitors were coming to market, our share actually went up, such that in the June quarter, according to IDC, we were responsible for three out of every four tablets sold.
However the Kindle Fire isn’t meant to be a direct competitor for the iPad – its aimed at a different market, people who want an economical tablet with easy to use services and features – all neatly tied up with a ribbon by Amazon. The Fire is a showcase of Amazon online services, and it has the full portfolio now with its own music and video store, ebooks and easy to use shopping on the Amazon website.
The Fire is enough of a tablet for those that want to push the boundaries slightly and install some games and other Apps to pass the time, but its the core Amazon services that the Fire makes readily accessible and there is a large market out there hungry for easy to consume media.