Amazon's first-generation Kindle Fire was absolutely not an iPad killer, and that's exactly why it was so successful. The online retail giant sought not to compete with Apple's juggernaut but rather to open a new door, one that would focus on a more compact design and far more affordable pricing. At $499, the iPad was a tremendous value. At $199, the Kindle Fire was a steal. But the Kindle Fire was just the beginning and affordability alone would only take Amazon so far. The company's current Kindle Fire HD models were the result of that realization, though they were merely the tip of the iceberg. With its next-generation Kindle Fire HD tablets that are set to debut this fall, Amazon is taking things to a completely different level — and its rivals should be worried.
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