Amazon announced a new “tablet” today called the Amazon Fire. It has a 7” color display and runs a version of Android. As expected, this low end tablet will have no impact on iPad sales while certainly cannibalizing existing Kindle sales and hurting Nook sales too. It’s really not a tablet, but a high end e-reader. How can people call it a tablet with no camera, no microphone and almost no apps? This isn’t necessarily a bad thing for Amazon as they just want to sell books, magazines and movies. The price is only $199 and at the same time they are dropping the price of the Kindle to $79. At these prices I fully suspect Amazon loses or makes almost no money on each sale. Actually to me the biggest news today might be the e-ink Kindle is now only $79. Christmas gifts anyone?? At that price I might even get one just to see if it helps me read more.

There is only one type of person I have met over the past two years that likes either a Kindle or Nook. People who like and have the time to read. This excludes me and most my friends with kids. I’m too tired and there just isn’t enough hours in the day. When I’ve asked why not just pay the extra money for an iPad the response is always one of two things. Either, “The glare hurts my eyes,” or “You can’t read an iPad in sunlight very easily.” Fair enough. However, this Amazon Fire “tablet” doesn’t help in either of those areas. Thus, I suspect this will be yet another “iPad Killer” that will be a huge fail. Amazon says there is a 10′ version coming early next year. The price on that will certainly be much higher. Amazon should have learned from the Playbook that 7′ tablets don’t work and I suspect any 10′ tablet they try will be about as successful as the HP Touchpad. Yes, the color will make reading magazines and websites nicer, but is that worth $100 when you do that on an iPad anyway? Not sure what Jeff Bezos was smoking to make him think he could take on Apple, but like others he’ll learn the painful lesson.

So what do you think? Anyone interested in the Amazon Fire or more likely consider getting a $79 Kindle?