Amazon Kindle Fire Scares Competitors: 10 Reasons Why

News Analysis: Amazon's Kindle Fire is slated to launch next week and will compete against the Barnes & Noble Nook tablet. But it might just scare all the big names in the tablet market.

When Barnes & Noble showed off its new Nook Tablet, the company had one goal in mind: Make all those folks who preordered the Kindle Fire rethink their decision. The Nook Tablet comes with a 7-inch display and Android-just like the Kindle Fire-but it doubles the amount of storage to 16GB and offers twice as much RAM as the Amazon rival. That said, the device retails for $249, making it $50 more expensive than Amazon's option.

Barnes & Noble's swift and strong response to the Kindle Fire is notable. The company appears to see Amazon's upcoming tablet as a threat, and the last thing it wants to do is allow the online retail giant to take a commanding lead in the lower-end tablet/e-reader market.

This leads one to wonder: What other companies might also be worried by what Amazon is planning to launch next week? After all, the tablet market is very much up for grabs right now, and the company that delivers the best solution-next to the Apple iPad-will likely be able to generate huge amounts of cash. Simply put, there is a lot riding on second place in the tablet market, and for now at least, many firms appear to view the Kindle Fire as their biggest rival.

Read on to find out why so many companies are scared of the Kindle Fire:

1. It's from Amazon

Let's face it:The Kindle Fire isn't all that unique. Several companies currently sell low-priced Android-based tablets that come with few high-powered features, and they're largely ignored by competitors. But Amazon is different. The competing tablet makers know about its marketing power. They understand how well-respected its brand is, and they see that it has the ability to dramatically change a market.

2. The price is right

At $199, Amazon is making it clear that it wants to at least become the second-place competitor in the tablet space behind Apple. Currently, there are several Android-based tablets that costaround the $499 price point that Apple's cheapest iPad holds. However, the number of low-priced alternatives, in comparison, is quite low. The Kindle Fire might just bring more consumers into the tablet space, and Amazon will profit from all of those folks.

3. It could put Android on the map

Looking beyond Android competitors, the Kindle fire could also scare Apple and Research In Motion. Those companies would like nothing more than to see Android fall flat in the tablet space. And so far, it has. But the Kindle Fire could change that.

4. Consider the apps

Surprisingly, Google has become a competitor to Amazon and the Kindle Fire. Sure, Google services will be available on the Kindle Fire, but one of the biggest features in the tablet-its app store-will not be powered by Google's Android Market. Instead, applications will be available through Amazon's own app store. If the Kindle Fire takes off, that could be a major issue for Google.

Don Reisinger

Don Reisinger

Don Reisinger is a longtime freelance contributor to several technology and business publications. Over his career, Don has written about everything from geek-friendly gadgetry to issues of privacy...