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Amazon Kindle Fire could see price of other tablet PCs slashed

Analysts claim pricing has hampered Samsung and Sony's bid to rival iPad

The launch of Amazon's Kindle Fire tablet could force other tablet PC vendors to slash the price of their devices, analysts are predicting.

The 7in tablet PC, which runs a customised version of Google Android, was unveiled yesterday. Powered by a dual core processor and featuring an IPS display, the 414g device offers access to a world of content, including music, movies, TV, photos and full colour magazines, making it more of a content consumption device than a personal computer, perhaps best compared to a large iPod touch.

See also: Amazon Kindle Fire review

See also: Amazon Kindle Fire: some good, some bad, some to be seen

Measuring 190x120x11.4mm, the device features a touchscreen made of Gorilla Glass with a 169ppi resolution. It also comes with an 8GB internal memory and according to Amazon offers eight hours of continuous reading or 7.5 hours of video playback, with the wireless switched off.

The Amazon Kindle Fire will cost $199 in the US, although UK pricing has not yet been revealed.

Ovum analyst Adam Leach told Retuers pricing "is critical to gain traction in the tablet market".

"Rival manufacturers have failed to attract consumers as they have matched the iPad's price point without matching its content offering," he said.

Samsung and Sony are among the vendors that have released tablets designed to challenge the success of Apple's iPad, which costs $499 in the US and £399 in the UK. Rivals the Samsung Galaxy Tab 10.1 and the Sony Tablet S are priced the same as the iPad in both the US and the UK.

"Amazon's retail-based business model allows the company to subsidise the device on the premise that consumers will buy more from Amazon, be that physical goods or its digital content."

Analysts from UBS agreed saying they expect the Amazon Kindle Fire to "put pressure on the other non-iPad competitors as they are unlikely to be able to compete on price and value".

"At $199, we believe Amazon's tablet has the potential to be disruptive to the market and, in particular, the non-iPad market...Other tablet vendors will find it difficult to match Amazon's price point."

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