The Apple (NASDAQ:AAPL) tablet computer is going to have an 10″ or 11″ screen, a touchpad key board, the ability to connect to WiFi or 3G networks to reach the internet. It is supposed to have relationships with media companies to offer users subscriptions to books, newspapers, and TV shows.
The New York Times report that the Kindle will be adding new applications by opening its software platform to outside developers. These developers will be able to sell these apps to consumers.
One of the biggest, if not the biggest differences between the two machines is price. The Apple product will probably cost $1,000. The Kindle retails for $250. The Kindle, however, does not have a PC processor and is not even close to offering the functionality of a PC.
The question is whether consumers will care. An iPhone does most of what a computer does. So does a mini-PC. The tablet is not only stuck in the middle, it is stuck in the middle with a remarkably high price.
Apple’s tablet has a number of critical advantages over the Kindle and consumers may be willing to pay for those. The Kindle cannot be used for the most modest PC functions like e-mail and web surfing. That restricts the machine’s utility.
Most analysts say that there is a good chance that Tablet sales will cut into those of the Amazon e-reader. But, Bezos may decide to take the best of the tablet and bake it into the “Kindle PC.” The tables might then be turned and Jobs may be the man with the problem.
Douglas A. McIntyre
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