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Apple iPad2 v. Amazon Kindle Fire: The battle royal that will define holiday gadget shopping

Amazon Introduces New Tablet At News Conference In New York

Spencer Platt/Getty Images

The new Amazon tablet called the Kindle Fire is displayed on September 28, 2011 in New York City.

Back in the good old days — you know, 2009 or 2010 — there was the Apple iPad and everything else. When it came to tablets, there wasn't really a true tablet market; there was an iPad market, as my favorite tech writer, Zach Epstein of BGR.com, has pointed out. But now there's another tablet in town. Here is Forbes' Tim Worstall on how the Amazon Kindle Fire will be different from the Apple iPad, business-model-wise:

Apple makes great kit, no doubt about that, but it charges great kit prices for it too. Then it makes a further margin on selling content (music, videos, movies, books) to go onto that kit. Nothing wrong with it but it is a model that might be vulnerable. Vulnerable to someone using the Gillette tactic (“give away” the razors in order to sell more razor blades) as Amazon is. Price the Kindle Fire at just about break even point and hope to make the profits by having a larger installed base to sell the content onto.

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