Andy Castonguay, Principal Analyst at Informa Telecoms & media comments on the launch of the new Kindle tablets
The new Kindle Fire HD lineup, which runs on Android 4.0, will provide Amazon with a much needed boost for its device sales, but faces an increasingly competitive field, especially from Google's Nexus 7 and Samsung's top tablet models. Amazon's combination of an expanded hardware offering and well-integrated and robust media services are well positioned for the short-term, but the online innovator will no longer be able to compete with only annual updates to its devices portfolio. Even with the improved quality and continued value pricing,
Amazon will need to issue semi-annual updates and include the most recent version of Android (Jelly Bean) in order to fend off Android competitors in the coming months. For faithful Amazon customers, the new line-up offers excellent improvements and better engagement with Amazon's expanding media and applications offering. However, Amazon's value proposition leadership will be increasingly challenged by the likes of Google's $250 Nexus 7, making it more difficult to convert users of other Android tablets to the Amazon family of services.