Home » Stocks » Apple pride drives poor iPad pricing. Kindle Fire changes tipping point $AAPL $AMZN #kindlefire #ipad

Apple pride drives poor iPad pricing. Kindle Fire changes tipping point $AAPL $AMZN #kindlefire #ipad

Image representing Jeff Bezos as depicted in C...

Image via CrunchBase

Kindle Fire finally dove into the shark tank. Just remember technology eats its own babies. Amazon (Nasdaq:AMZN) and Jeff Bezos have launched the smartest device to drive sales and revenues directly into Amazon. The Kindle price points have delighted the market. Compared to iPad a lot of new users will naturally gravitate to Kindle Fire. Jeff Bezos is very smart in not getting into a PR word battle about Apple (Nasdaq:AAPL) losing its dominance. Just make the customer happy and laugh to the bank which is hopefully still solvent.

Apple is not stupid. They will monitor their sales carefully. They already have cut back the manufacturing orders. The moment iPad pricing is dropped to create more value you know the tipping point has been reached. Currently the apple game plan is to be cool with the most app’s thereby driving demand but at a high price. The price is not sustainable. If Apple tries to chase the price down it will alienate customers and signal to the world that it has it wrong.

You can imagine what the stock price will do as the energy changes from hyper-positive to hyper-negative. Market behaviours are manic-depressive and you know it’s coming.

Notice I’ve said nothing about the other tablets.

Disclosure: George Gutowski writes from a caveat emptor perspective. I own both iPhone and Kindle e-reader. I do not hold positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.