With the dust still settling from Amazon's Kindle tablet refresh, analysts are split on what the rollout means for the company.
Amazon once ruled the low-priced tablet market. The tech company has said it was able to grab a 22 per cent US tablet market share within nine months of the first Fire's release.
However, with the lowering price points from the likes of the Google's Nexus 7 the market for sub-$200 tablets is getting crowded.
Ovum chief telecoms analyst Jan Dawson sees the new Fire's unveiling as a signal that Amazon is clearly threatened by the growing tablet market.
"Amazon is clearly spooked by Google's Nexus 7 coming in at $200 for a much more capable device. It's upped its own hardware specs while reducing the price to $159, which is clearly an attempt to keep it somewhat attractive in the face of that new competition from Google and Asus," Dawson said.
Dawson sees the Nexus 7 as a much more attractive tablet as far as hardware is concerned. The Ovum analyst believes that Amazon may have a hard time competing as other tablet makers continue the push towards cheap tablets.
Despite questions about Amazon's hardware-making abilities not all pundits are as down on the Kindle.
Gartner vice president of research for consumer technologies and markets Carolina Milanesi told V3 that Amazon's new tablets and preexisting ecosystem put the company in a good position for growth.
"Amazon did a great job today. They continue to give value to their original Kindle improving the experience for those consumers that prefer the single function device," Milanesi said.
"They improved the original Fire to appeal to that large market of consumers that are still uncertain about the value of tablets and they're prepared to make a financial investment but not a large one."
Milanesi specifically points out the Kindle Fire HD's ability to go after the iPad and its huge market share.
"They went head on with the Fire HD to grow the experience and go and compete head on with the only credible tablet out there: the iPad," Milanesi continued.
Investors tend to agree with Milanesi as Amazon stock hit an all time high in preparation for the Kindle unveiling. Stock in the Fire maker blew up before the tablet announcements and reached $251.38 per share.
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