Amazon Kindle Fire’s Success May Vaporize Android Tablet Competition

John Paczkowski:

This according to Evercore Partners analyst Robert Cihra, who says the Kindle Fire’s loss-leading $199 price could effectively ruin the market for other Android tablet makers.

“Amazon’s Kindle Fire has come out of the gates strong,” Cihra writes. “[And its] success may just vaporize other ‘for profit’ Android tablet OEM roadmaps.”

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.