Apple Welcomes Low Priced Kindle Fire Tablet And Further Android Fragmentation

Barclays’ analyst Ben Reitzes just visited with Apple CFO Peter Oppenheimer and CEO Tim Cook in a meeting where they discussed Amazon’s new low priced Kindle Fire tablet running on Android. According to his research note, (via Business Insider), Apple’s executives welcome the launch of the Kindle Fire on the market as it will contribute to further fragmentation of the Android ecosystem. And the more fragmentation of Android ecosystem, the better for Apple, as more customers will turn to stable Apple platform. The Kindle Fire runs on Android and at the same time it has been modified by Amazon to interact with its services and products.

Reitzes believes that Apple will finally lower the price of iPad, but Apple will not compromise on customer experience or quality to match pricing of its competitors.

Apple and Amazon have different strategies in approaching the tablet market, with Apple reaching high profitability on hardware while selling services and content at about break-even prices. As for Amazon, it is said to take a loss on Kindle Fire sales, but uses the device to draw more customers into its product and content ecosystem.