Amazon Tablet: Best of iPad and Kindle?

Amazon may have not been interested in competing with Apple in the tablet market with the Kindle. Nevertheless, the market is too lucrative for it to turn away from. Besides, Amazon has been slowly putting powerful pieces together to create a powerful ecosystem for its upcoming tablets. As the Wall Street Journal reported, Amazon’s tablet will not be an iPad killer. At least not the first one which will be released in the next couple of months.

Amazon’s brand, user base, and digital media offering would position a tablet well against some of the other options out there… Tablet users tend to purchase more digital items than comparable physical items, so Amazon wants more exposure to that.

explains Colin Sebastian, an analyst at R.W. Baird. Apple will still have the early mover advantage in the tablet market regardless of what Amazon and other Android tablet makers come up with. Considering that other Android tablets have simply not taken off, Amazon’s slates could sit right behind the iPad.

Amazon is getting in the tablet business to encourage people to buy more of its products. Kindle owners are already locked into Amazon’s platform and bring the company a ton of revenue from e-books. There is no reason Amazon tablets should not be able to bring more customers to Amazon’s cloud, music, video, and app stores. Android will get a boost from these products too. Will B&N NOOK Color survive this effort by Amazon? We will have to wait and see.