Sure, but in an ideal world, Amazon would be able to give it away for free. They’re getting close with the Kindle eReaders!
The point is that it’s an entirely different model and that matters to both sides of the equation. Kindle Fire sales so far have no impacted iPad sales, and like Dediu, I expect that non-trend to continue. But on the flip side, I could see iPad mini sales hurting Kindle Fire sales…
With the iPad, AT&T offers 250 MB of data a month for $15 a month (technically, $14.99, which is odd since every other deal is a round number). With the Kindle Fire HD, AT&T offers 250 MB of data for $50 a year. So that’s $180 a year versus $50 a year for the same data on the two different devices.
Perhaps not coincidentally, when you factor out the storage markup, Amazon is charging users $130 to upgrade to the Kindle Fire HD with 4G/LTE.
So it’s possible that Amazon is passing the entire $130 from consumers over to AT&T to secure their good-looking deal. But if that’s the case, why not either tack-on or eat the remaining $50?
It’s just another layer of complexity for the consumer and it’s a weird one since most consumers are going to want more than 250 MB of data a month with an LTE connection. In fact, it’s such a weirdly small amount, that Verizon doesn’t even offer the option.
Again, I just don’t get it.