Kindle versus iPad: Will half-price challenger force Apple to cut cost too?



Android tablet will be $199

New black-and-white eBook readers for as little as $80



Gadget can access any of Amazon's 100,000 films or 17m songs

Will launch on November 15



Offers super-fast new browser, 'Amazon Silk' using 'cloud' technology



UK users may not see Fire before Christmas



Amazon yesterday unveiled a touchscreen tablet com-puter in an attempt to pull the rug from beneath Apple and its iPad.

The Kindle Fire, which has many similar functions, will be sold in the U.S. for $199 (£128), less than half the price of the cheapest iPad available.

The low cost stunned technology industry watchers, who suggested that Apple and other tablet manufacturers would have to cut their prices.

Amazon’s basic Kindle is used for reading eBooks. The Kindle Fire will combine this feature with the ability to play music, films and games and surf the internet.

Users will be able to access more than 18million movies, television programmes, songs, apps, games, books and magazines via the Amazon website.



The device has a seven-inch screen, compared with the iPad 2’s 9.7-inch display. And unlike the iPad, it will not have a camera or be able to make video calls.

Unveiling the tablet in New York, Amazon’s chief executive, Jeff Bezos, said: ‘Kindle Fire brings together all of the things we’ve been working on at Amazon for over 15 years into a single, fully-integrated service for customers.

The Kindle Fire will offer gaming, films, music, web browsing and books - all for just $199

Amazon CEO Jeff Bezos unveils the Kindle Fire today

The e-reader and tablet has a 7-inch (17.78 cm) multicolor touchscreen - and doesn't need to dock with a PC, unlike iPad

‘These are premium products at non-premium prices. We are going to sell millions of these.’

The Kindle Fire will be available in the U.S. from November 15.

Although no date has been set for it to go on sale here, Britain will be getting the latest version of the basic Kindle, which is thinner and lighter than existing eReaders.

It will cost £89 – but even this is a mark-up of almost 80 per cent compared to the U.S. There, the new version will cost $79 – about £50.



The cheapest American model is, however, supported by advertising on the 'rest' screen - where British users see Black and white pictures of authors such as Agatha Christie, Americans who opt for the cheapest Kindle see adverts instead. Ad-supported Kindles have yet to launch in the UK.



Amazon CEO Jeff Bezos holds up the new Kindle Touch - one of several new aggressively priced models of the e-Reader unveiled today

The Kindle Fire on show - it uses a customised version of Google's Android operating system

A company spokesman defended the pricing, saying that the new basic Kindle was the ‘most affordable’ ever.

She added: ‘Operating costs differ by country, but as with all products on Amazon, we work hard to offer customers the lowest possible prices.’

But Professor Ajay Bhalla, a technology expert from Cass Business School in London, said: ‘Amazon has not got the pricing right. Consumers are smart and there is plenty of choice in this market.’

He doubted the Kindle Fire would pose a meaningful challenge to the iPad because of the absence of a camera.