The attractive lower price tag of Amazon’s Kindle Fire might be luring in plenty of customers, but according to some analysts, owning the Fire is akin to a “soap box derby” car and eventually, customers will upgrade to an iPad. Burn!
But why would someone own a cheaper tablet and then pay more for another? According to analysts at J.P. Morgan, Apple will gain new customers when they decide to upgrade to a more “feature rich” experience than the Fire offers, says PC World.
J.P. Morgan analysts met with Apple executives and ended up giving them some pretty nice assurances about the competition.
“It has been our view that low-priced, reduced feature-set entrants, such as the Kindle Fire, are soap box derby devices stuck between a tablet and e-reader,” writes the firm’s IT Hardware team. “Meaning, we are not concerned much about competitive pressures until the second or third generations.”
The analysts do note that Apple has to keep up their efforts to woo customers by continuing to update their products. Which could mean an iPad 3 before too long, and most likely, Amazon’s answer to that with another tablet of their own.