The fact that no facts are yet known about Amazon's forthcoming tablet computer has not prevented people from speculating wildly about what features such a product might or might not include, even going to the idiotic extreme of predicting why it will fail based on speculation about speculation.
Into the fray now steps Forrester analyst Sarah Epps. Making some broad brush assumptions about Amazon's strategy, she foresees a pretty good holiday season:
Even though Amazon taking on Apple is a bit like David taking on Goliath (compare the market cap, profits, and cash position of the two companies), Amazon’s willingness to sell hardware at a loss combined with the strength of its brand, content, cloud infrastructure, and commerce assets makes it the only credible iPad competitor in the market. If Amazon launches a tablet at a sub-$300 price point — assuming it has enough supply to meet demand — we see Amazon selling 3-5 million tablets in Q4 alone.
-Forrester blogs, August 29, 2011
Although Amazon has maintained its lead in ebooks, it has not had much success in the past taking on Apple. In sales of digital video and music, for example, Amazon trails far behind iTunes.