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iPad2 outpriced for Christmas by Nook, Kindle Fire

By PETER WHITE

Published: 11 November, 2011

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We had a research meeting with a client the other day and while none of the pieces we had written compared the new breed of ebook reader style tablets directly to an iPad, it was obvious that we all thought that deep down, the Kindle Fire and the new Nook would take money from Apple's tablet table.

So far the iPad has had the media tablet market largely to itself besides some copycat Android devices, and that has enabled Apple to command premium pricing, but with the arrival of Amazon's Kindle Fire which can be bought in about a week and more recently the new Nook Tablet from Barnes & Noble, announced this week, there are two devices which do almost as much as an iPad (but not quite), for a fraction of the price.

These two have almost studiously avoided direct comparisons with the iPad 2, but the intention is clear enough, to compete on price with devices that have similar form factors and functionality, and with a focus on video as well as eBook ability.

The early signs are that the strategy is working because some 26% of people who are planning to buy the Kindle Fire have put off purchases of the Apple iPad, which will directly affect sales. Hype for Amazon's new tablet with a color screen was driven largely by the device's low $199 starting price, less than half the entry-level $499 for iPad 2 and now with the Nook Tablet at $249, we have a marginally bigger tablet at 8.1 inches that is actually lighter. Neither have the power of an iPad but the Nook has 1 GB of RAM, 16 GB of memory and a microSD slot.

For a full analysis of this subject go to www.rethinkresearch.biz/faultine and order this week's Faultline issue.

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