Amazon Tablet Computer

July 14, 2011 by USA Post 

Amazon Tablet ComputerAmazon Tablet Computer, Inc (AMZN.O) will launch a Tablet PC this year to expand its position as the largest retailer in the world of Internet, mobile commerce to expand and sell more digital products, according toanlysts and investors.

Amazon plans to introduce a tablet with a 9-inch screen before you will run into October (GOOG.O) Google Android operating system, the Wall Street Journal reported Wednesday, citing unidentified sources familiar with the matter. An Amazon spokesman did not respond to requests for comment Wednesday.

Analysts and investors have been waiting for a tablet Amazon for several months. The company’s shares reached a record high in early July, partly because of optimism about the new device, according to Colin Sebastian, ananlyst at RW Baird.

“The Mark of Amazon, the user base, and offer digital media that the position of a bar against some of the options out there,” said Sebastian told Reuters. “Tablet users tend to buy more digital comparable physical items, what Amazon wants more exposure to that.”

Amazon shares rose 1.1 percent to close at 213.50 and Wednesday, leaving more than 17 percent so far this year.

At least 1.5 million tablets Amazon brand is being built in the third quarter and the target for 2011 as a whole is 4.5 to 5 million units,anlysts at Canaccord Genuity hardware in writing in a recent note to investors.

The measure will increase competition between Amazon and Apple Inc (AAPL.O), which make the best-selling iPhone and also sell digital books, music and video through its iTunes service.

“In the tablet market, the No. 2 player is Amazon,” said Mark Gerber, director of technology research in Detwiler Fenton, told Reuters. “None of these other pills so successful.”

(MMI.N) Motorola Xoom Mobility and Research (RIM.TO) Motion Playbook fought in part because the pills are not connected to the content, says Gerber.

In contrast, the iPad is intertwined with iTunes, where users can buy music, videos and digital books.

Amazon already has a lot of content that users can access Tablet as Kindle e-books, download music and videos to buy, rent or current.

Amazon Gerber said tablet may come with free access to on-demand video streaming service company for at least an introductory period.

In March, Amazon launched a service that allows Cloud Drive customers to store files on their servers. In the same month, also unveiled a smartphone Android AppStore and tablets, get in the business of selling games. Both measures are put in close competition with Apple, which offers similar services.

Gene Alvarez, whoanlyzes Amazon’s strategy, Gartner believes that the AppStore as a precursor of a tablet of the company.

In May, Reuters said Amazon CEO Jeff Bezos on a tablet. He declined to comment specifically, but suggested that there was enough room for a rival to Apple.

“It is very useful when you are planning on (with) any introduction of new products, the company is probably hoping to kill off any other company,” said Bezos. “They are hoping that can be part of something big.”

While Amazon is invading Apple’s turf, Alvarez and others say that online retail giant is launching a tablet for different reasons.

Apple provides content to drive sales of their equipment, while Amazon wants a pill to get customers to buy more of its other products.

“At the margin, may be able to make some money selling a pill. However, Amazon is actually do to support their core business,” said Bill Smead, head of Seattle-based investment management investment companies Smead Capital. “If you sell a new pipe from time to time and keep the water clean, people are still smoking pot anymore.”

The strategy of having a device that encourages more buying is something that Amazon and started successfully, said Anthony DiClemente, ananlyst at Barclays Capital.

Amazon announced earlier this year that more books are now sold digital than physical books, and DiClemente Barclays, “the company said on Kindle reading device was the catalyst for that change.

Amazon tablet has the potential to do the same for other products the company sells, he said.

“It will strengthen the strong influence of Amazon in the e-commerce activity and provide a way to further advance the video and other digital content,” said theanlyst.

Amazon Launches Gartner Alvarez a pill to exploit the growth of mobile commerce.

The total value of mobile payments and may reach 670 billion by 2015 and 240 million dollars this year, according to a recent forecast by Juniper Research.

“The mobility combined with the ability to Amazon online sales allows consumers when they want to buy,” said Alvarez. “Before mobile commerce, Amazon had to wait until they put in front of a computer.”

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