It Might Be Time for Amazon to Revamp Its Marketing

 
 
By Don Reisinger  |  Posted 2012-07-23
 
 
 

Google Nexus 7 Is Killing the Kindle Fire: 10 Reasons Why


Google€™s Nexus 7 is selling extremely well. In fact, the company€™s Google Play store, which is one of the homes of its device, shows the 16GB, $249 version of the tablet sold out while the 8GB version of the table is still available.

What€™s worse for consumers, Google hasn€™t said when it might have more in stock, which is a clear indication that demand for the tablet was much higher than the search giant had initially anticipated. That shortage has carried over to retail outlets where it€™s reportedly difficult to find the Nexus 7 on store shelves. 

The Nexus 7€™s success was predicted by some who said it was the right balance of high-quality components and affordable pricing. And although Google is enjoying its success, sales of its chief competitor, the Amazon Kindle Fire, have been becalmed. The company€™s Kindle Fire was once the 7-inch tablet market€™s best option. Now, it€™s a distant second. And slowly but surely, the Nexus 7 is stealing all of the Kindle Fire€™s sales.  

Amazon will have to correct that situation soon if it doesn€™t want its tablet to be swamped from the market. That€™s why pundits are saying to look for new and updated Kindle Fire models in time for the holidays. 

Read on to find out how the Nexus 7 is killing the Kindle Fire

1. It€™s all about design 

When comparing the Kindle Fire and the Nexus 7 on their design quality, it€™s hard to pick Amazon€™s option. The Kindle Fire is very basic, due mainly to Amazon€™s desire to keep its price down. But with the Nexus 7, Google was able to also keep the price down while remembering the look and feel of a product matters. It€™s nice to see. 

2. The value argument 

When it was first made available last year, Amazon€™s Kindle Fire delivered real value for its $199 price tag. But as advancements have been made in components, the Kindle Fire€™s value proposition has declined. Today€™s consumers want to know that the product they€™re getting can justify its price. The Nexus 7 can deliver that value. The Kindle Fire, on the other hand, leaves much to be desired at this point. 

3. Maybe $199 isn€™t as important as some think 

There was some concern after the Nexus 7 reached the market that its $249 price tag would be a liability. However, that doesn€™t appear to be the case. For those that want the cheaper, $199 model, they can get that. But for those who want to spend $50 more and get the 16GB option, it was available, at least until recently. According to Google Play, the 16GB option is sold out as of this writing. Maybe Google€™s decision to have one Nexus 7 model $50 more expensive than the Kindle Fire wasn€™t such a bad idea, after all. 

4. The Tegra 3 is huge 

Google€™s Nexus 7 comes with the quad-core Tegra 3 processor. And with it comes top-notch performance and reliability that most folks just won€™t find today. The Nexus 7 is more powerful than the Kindle Fire. And consumers know it.

 

It Might Be Time for Amazon to Revamp Its Marketing


 

5. Consumers want the new OS 

The nice thing about the Nexus 7 is that it comes with the latest Android flavor, 4.1 (Jelly Bean). What that means is consumers are getting the latest and greatest features Android has to offer. And at a starting price of $199, the barriers to entry are quite low. Amazon€™s Kindle Fire is lagging behind because of that lack of support for the latest software version. 

6. Google€™s marketing might 

If Google is good at anything, it€™s effectively marketing its products. The company has found a way to make its search dominant, its advertising powerful and the Android the operating system that leads all others. The Nexus 7 is the latest benefactor of that. Amazon just doesn€™t have the marketing might Google has, at least when it comes to marketing a tablet. 

7. A more familiar software experience 

Amazon was highly regarded for its decision to take a standard Android installation and turn it into its own OS experience. However, given the Nexus 7€™s success, it€™s possible that consumers would rather have the standard Android feel they have on smartphones. A more familiar software experience appears to be winning out in tablet land. 

8. Don€™t forget the smartphone link

Although it€™s often overlooked, it€™s important to point out that success in the tablet space often means having a strong smartphone offering. In most cases, consumers buy smartphones first. If they like it, they€™ll buy a product that matches it on the tablet side. If they don€™t like their smartphone, they€™ll go elsewhere. Amazon doesn€™t have a smartphone link; Google does. That€™s an issue. 

9. Does the Kindle branding work? 

Amazon€™s decision to call its tablet the Kindle Fire might have, pardon the pun, backfired. Amazon€™s Kindle branding is known for its e-readers. The Nexus branding from Google linked to a line of high-quality mobile devices. Branding matters. It Iooks like Amazon didn€™t quite remember that. 

10. The companies€™ brands 

It€™s important to note the difference between Amazon and Google€™s brands. On one hand, we have a company that€™s known for its retail and little more. On the other, we have a company that was once known solely for search and ads, but has been able to become synonymous with mobile products. That only helps Google€™s product appeal and hurts Amazon€™s. 

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