Will Kindle Fire Up Amazon’s Stock Value?

Amazon gained $5.50, or 2.5 percent, to $229.71 on the Nasdaq Stock Market. The stock has risen 28 per cent this year.

The new Kindle Fire tablet from Amazon is receiving plenty of attention for its low price as well as updated media integration.

The investors of Amazon are hoping that the new Amazon tablet, the Kindle Fire, will make it unique from other Android tablets in order to become the clear No. 2, after Apple, in the coming quarter. Definitely by means of aggressive pricing, marketing and brand recognition this should be achievable.

The price of the Kindle at $199, less than half the cost of Apple’s most affordable iPad tablet, should be appealing to customers who are on the lookout for a low-priced device to read books and watch movies. The Amazon Kindle Fire will come with a 30-day free trial of Amazon Prime, which is the company's $79 annual membership for two-day shipping and extra content like streaming movies. It will start shipping to consumers on Nov. 15.

Apple started selling the original iPad in April 2010 and introduced the iPad 2 in March this year. The company shipped 9.25 million iPads in the quarter that ended June 25.

Meanwhile, two other tablets have attempted and failed to diminish the dominance of Apple in the tablet market. While Research In Motion’s PlayBook, introduced in the second quarter, shipped only 200,000 units, Hewlett-Packard discontinued its TouchPad in August, only about a month after its debut.

Amazon's Jeff Bezos said that the Kindle Fire shouldn't be thought of as a tablet, but rather as a service. Now it has to be seen what service it will do to its stocks.