Sunday, February 5, 2012

How HP Set The Tablet World On (Kindle) Fire

I'm a little late on this post. Actually, I am very late. Sorry for the delay. I will make up for it with a few posts this time. Always something to talk about, isn't there? So, come sit for a spell and let's catch up.

Life moves pretty fast. If you don't stop and look around once in a while, you could miss it Ferris Bueller
 
By now, most of you are know about the Kindle Fire. No, it's not the best tablet to ever hit your hands, and it didn't start the tablet craze. But it may be your first tablet and will likely be credited with beginning the widespread adoption of tablets. So, how is it that Amazon is selling millions and a stalwart like Motorola can't get past the million mark with its Xoom.? Well my friends, the Amazon holiday card list now has a new address on it. Nope, not that fruit company in Cupertino. This is a Palo Alto, CA address; the HP mothership. Not what you were expecting, huh? Amazon is smart. Very smart. And they have been throwing a full tablet idea around for some time. But they needed a bit more more time and intel (not the company; intelligence). And who better to provide it than your competition. It was primarily done by HP, with a slice of Apple and an honorable mention going to Motorola. Here is how this all shakes down.

Hey Ferb! I know what we are going to do today
Almost a year ago, Motorola launches the Xoom. Day one, I was the second one in line to grab one of these puppies. No, the experience did not resemble the Samsung vs Apple commercials. It was more low-keyed. Anyway, I continue to dig it very, very much. Unfortunately, thanks to its $600 price tag, the public punished Motorola by sentencing it to a kind of electronic purgatory for what amounts to an excellent piece of hardware; to date, they have barely sold a million (perspective check: Apple sold about 50,000 iPADS in 2011. Ahem, 50,000 per day). It is not the "iPAD killer." Frankly, it couldn't be considering it was the first of its kind in the Android world. And besides, you all know there is only one Elvis in a world full of Elvis impersonators. But, it was a start. And a good one at that. Note to Amazon, send flowers to your teacher: Motorola.

Now, we switch classrooms to HP. Ah, the HP Touchpad. The "Neil Young" (or Def Leppard if you are slightly younger) of tablets. Quoting them both, "it is better to burn out than to fade away." And boy did they. While the rest of the world was digging on chocolate (Apple) and really starting to like vanilla (Android), HP thought they would become the third pillar of ice cream: strawberry. Ok, there is a forth flavor out there: Blackberry. But it seems to be an acquired taste.  Just couldn't resist ;) Well, not only was the world not ready for strawberry, it had already become a bit lactose intolerant due to all the chocolate and vanilla being consumed. Some tough ice cream love for HP. And what did they do? The unthinkable: they dumped their CEO, stopped production, and blew out their inventory at $179.00 then $99.00  (not necessarily in that order). And while no one saw that coming, they certainly didn't expect what would happen next: the Touchpad became THE most desirable device to own. That's right a dead end device is now the hottest device in the world. And now you can actually hack the device and run Android on it. Amazing. Note to Amazon: people like strawberry; they just wanted the cheap store brand and not Haagen Daz.  

Hey Phineas! Whatcha doin?
Still with me? Good. Let's now talk about Amazon. They are perhaps the most trusted brand on the Internet. They sell pretty much everything. However, I'd like you to take a moment and focus on a couple of specific things they sell: music, books, and movies. The very same things as that Cupertino fruit company. I hear the gears turning in your head. Remember what I have said before about tablets and the magic price of $200.00? Buckle up, here it comes.  

You are Amazon and here is what you know. First off, you know that people really like and trust you. You know people like ease of use, portability and content. You know people enjoy reading books on the Kindle. You know you need the Internet to make it all really sizzle. And you know that the elephant in the room happens to not be Microsoft. A grab of the chin gives you a moment of pause as you begin to think. You have a massive following, and they are agnostic to OS and device. You have more to offer. Besides music, movies, and books, you have merchandise and storefronts. Lots of both. And you know that your customer demographic is wide and likely the most desirable of any company on Terra Firma. A strong beat of the chest and a proclamation that "we are Amazon." finishes the thought. Now, throw in a dollop of the Motorola and HP (jeez, can you tell I am hungry) and what do you realize? This: Apple taught us that people want tablets; HP taught us that people want tablets for $200.00; And Motorola has given the unexpected vote of confidence. So, what do you do? Introduce a tablet, at a $200.00 price point, that gives a mere mortal person full access to the world that is Amazon. Give it to them with WiFI and Internet access. And do it with a platform that people know, that is fully customizable with hundreds of thousands of apps: Android. That's right, your phone apps work on your tablet. And if you had such a device, you could surely do something that no one else (to this point) could really do: compete with Apple. The price advantage; the content advantage; the trust advantage. Great white buffalo? No. Kindle Fire. 

You guys are so busted!
Fly up to 10,000 feet with me for just a moment and look at the ecosystem and not the animal. The animal (Kindle Fire) will evolve. And it will do so rapidly thanks to a very healthy ecosystem (Amazon's full content and merchandise offering). I know what you're saying. The Kindle Fire v1 ain't no iPAD. You're right. It's not. But it will get better. Quickly. Don't believe me? You should. Apple sure does. So much so that they are looking to introduce a lower priced iPAD. And, they are working VERY hard to increase their ecosystem because they are keenly aware that evolution happens in near-real time these days. Moreover, the brewing battle to be fought will not be against is old pal Microsoft or its new foe Google. It will be Amazon. You heard it here first. Not to worry though. Amazon won't lose regardless of your choice. You can still use Amazon on your iPAD. Yes there is an app for that.