Kindle Fire is a 7-inch screen, $ 199 device. Apple iPad at the cheapest costs $ 499. Kindle Fire is a tweaked version of the Kindle reader, and it runs Google's Android operating system.
Kindle Fire has no built-in camera or microphone. It has a wireless wi-fi connection, but no 3G. With $ 79 a year Amazon Prime customers will receive the device for a month trial.
Amazon CEO Jeff Bezosin says they have an opportunity to really challenge the iPad, because Amazon dominates the online marketing.
Books, movies and music can fill the sales of equipment likely to be low margins, Wedge Partners analyst Brian Blair told the news agency Bloomberg. Blair, the Amazon is the only player in the tablet market, which is the same as the Apple is offering.
Amazon, however, continue to keep the development of tablets in order to become a viable competitor, Blair says. According to him the right pill is to be a 10-inch display.
Pacific Crest Securities analyst Steve Weinstein of the Amazon, growth is of great importance in terms of how consumers take the device in future.
Amazon Kindle Fire preorder: Kindle Fire, Full Color 7" Multi-touch Display, Wi-Fi