As more details emerge about Amazon’s rumoured Kindle tablet it’s becoming apparent that it has the potential to significantly challenge the so-far-untroubled dominance of the Apple iPad, which has sold almost 30 million units since its launch in April 2010.

Technology blog TechCrunch published details of the Android-powered device, which will ditch the e-ink technology used by the company’s Kindle e-reader and replace it with a back-lit full-colour 7-inch capacitive touchscreen. TechCrunch also reports that the device will initially be Wi-Fi only with a 3G version to follow later, and that a 10-inch version of the tablet is possible if the smaller version proves a success.

So far, so standard tablet. But what makes the prospect of a Kindle tablet so intriguing – and what could take it into the same league as the iPad – is the ecosystem of services it will tap into, the kind of ecosystem that could make it an attractive proposition beyond its form factor.

Users of the Amazon tablet will get access to content and tools beyond the device’s own capabilities, something it has in common with Apple’s App Store and iTunes.

The Kindle tablet will reportedly provide access to the Amazon Android Appstore, the Cloud Player and Instant Video Player music and video streaming services and ebook store. It will also provide access to Amazon’s e-commerce site from where users can download music in a similar way to Apple’s iTunes and where, of course, physical items can be bought. It has also been reported that Amazon is designing its website to optimise it for tablets.

The Kindle tablet will bring all of these elements together, meaning the device will act as a portal to all of these services in addition to its standard Android tablet functionality.

The breadth of Amazon’s business is what could propel its tablet into the stratospheric heights currently occupied by the iPad. The company will make money by selling the device, and make even more by selling content through it.

And the Kindle tablet looks to have another trick up its sleeve: the device will cost around US$250 according to reports – half the price of the entry-level iPad.

Price is always important and going by HP’s experience – when it sold out of TouchPads after slashing the price of the device – tablets fly off the shelves if the price is right. HP had previously said it would stop selling the TouchPad after disappointing sales but announced a final manufacturing run of the device due to popular demand.

With the well-regarded Android OS – which is making inroads into Apple’s dominant position in the tablet market – combined with Amazon’s plethora of consumer services and keen pricing, success for the Kindle tablet seems assured.

Analyst group Forrester certainly seems to think so, predicting that the device could “easily” sell as many as 5 million units in the final quarter of the year. Forrester analyst Sarah Rotman Epp added that the fact Amazon is willing to sell hardware at a loss, as it did with the Kindle e-reader, makes it “a nasty competitor."

But there are obvious chinks in the Amazon tablet’s armour. The tablet probably won’t have a camera, unlike its main rivals. Using the touchscreen for viewing and editing photos will presumably be possible, but the ability to do so with photos taken on the device itself won’t be.

Meanwhile, the Amazon App Store is currently US-only, meaning anyone outside of that country won’t be able to tap into the very ecosystem that could make the Kindle tablet a hit. Amazon may be planning to make its App Store available elsewhere – and it has the infrastructure to do so – but until it does, its tablet won’t be playing its full hand beyond the US.

Admittedly, other tablets from big names have failed to deprive Apple of any sleep, but this has mainly been down to fundamental problems that have limited their uptake. The BlackBerry PlayBook for example, only provides access to emails if the user also has a BlackBerry device. Meanwhile, HP’s TouchPad, now enjoying an Indian summer, never had HP's full marketing weight behind it as the company made the decision to stop selling hardware running the webOS platform.

These products suffered from strategies that didn’t quite hit the mark for consumers. But with Amazon’s consumer savviness and strong brand, allied with the ecosystem of services and relatively-low pricing, an Amazon tablet could be the product that finally takes the fight to the iPad.

Tim Ferguson

The editorial views expressed in this article are solely those of the author(s) and will not necessarily reflect the views of the GSMA, its Members or Associate Members