Should Amazon Launch An iPad 2 Competitor?

Analyst firm Forrester claims that online retail giant Amazon should come up with its own tablet based on an open source mobile platform, Android or Linux-based in order to compete with the Apple iPad 2 and its successors.

Writing on Forrester's blog, Sarah Rotman posited last week that other brands are likely to fail because they have "fatally flawed product strategies" and are rather expensive.

She lists three factors that could contribute to the success of an Amazon tablet; there's the (intrinsic) motivation to counter Apple's threat to Amazon's own business model.

After all, just like it did to Google, Apple is also a growing menace for Amazon and the latter may actually reply tit for tat to Apple's endeavour by creating its own "walled-garden" device, which would be an improvement on the Kindle.

Amazon could work on a pricing model that works; like the Kindle it could sell it below cost and make up for it through the sale of content; with Audible, Ebooks, Amazon Video, its forthcoming Android App store and its MP3 store, Amazon has some very compelling content solution that can match easily Apple's.

Then there's Amazon, the brand, which is trusted by millions; according to Forrester, 24 per cent of consumers would prefer to buy a tablet from Amazon rather than from Samsung.

Of course, there's the real possibility of enticing existing Kindle users to migrate to a more compelling mobile solution.