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SAN FRANCISCO/NEW YORK - THE buzz in the gadget world has shifted from Amazon.com to Apple Inc with the launch of its long-awaited iPad tablet, but analysts say the world's largest retailer's Kindle device is safe in its smaller market - for now.
Industry watchers had speculated for months that Apple's new tablet would take a bite out of market share for the US$259 (S$364) Kindle electronic reader, its best-selling item introduced in late 2007 and touted by Amazon as 'the' gadget to buy.
But those fears appeared overblown on Wednesday, with shares of Amazon closing up 2.74 per cent at US$122.75 on Nasdaq - perhaps on relief that Amazon's Kindle remained secure.
'They (Amazon) don't have to worry about the market for their product suddenly drying up because everyone's migrating to the iPad,' said Forrester Research analyst James McQuivey.
'Amazon has a year's runway left to show that they're going to stay ahead of Apple, and if they don't, by a year from now, Apple will have a few more content solutions in line,' he added. 'At that point it becomes a threat if Amazon hasn't responded by then.' Mr James Friedland, a Cowen & Co analyst, agreed.
'This doesn't change the game,' he said. 'At the same time, Apple is a formidable competitor and our view is that over time Apple and Amazon will emerge as the two largest players (in e-books).' Kindle should remain the device of choice for avid readers, analysts say, due to its e-Ink technology that minimises eye strain and its already-formidable network of book choices. The iPad is backlit, which makes it more difficult to read. -- REUTERS
