This according to Evercore Partners analyst Robert Cihra, who says the Kindle Fireâ€™s loss-leading $199 price could effectively ruin the market for other Android tablet makers.
â€œAmazonâ€™s Kindle Fire has come out of the gates strong,â€ Cihra writes. â€œ[And its] success may just vaporize other â€˜for profitâ€™ Android tablet OEM roadmaps.â€
The expectation is the Amazon Kindle Fire will capture 50% of the Android tablet market in 2012.
The overall tablet market will be interesting: In between the US$199 Kindle Fire and the $499 iPad 2 is where everyone will need to compete. Both are interestingly enough closed ecosystems so the competition will need to bring along a full-blown online store filled with books, magazines, newspapers, music, TV shows, movies, apps, and more. Good luck.