Amazon’s new Kindle ‘Fire’ — is a brilliant marketing decision
Sure, the pricing is absurd.  Absurdly good.  For consumers.  Some believe Amazon’s losing money on every tablet they sell.  So the brilliance isn’t because of the extremely good price.

Kindle is playing on its strengths, not competing on its weaknesses
The tablet computer market is crowded.  Over-crowded.  So another tablet is not a smart idea.  Neither is creating an alternative to Apple’s iPad.  Kindle Fire makes neither mistake.

Kindle Fire is both unique AND beneficial
Kindle’s Fire is different and better than Android tablets that are both supported — and limited by — Google.  Amazon’s Kindle Fire is supported by Amazon’s version of Android and its own content — a far more extensive resource.  Also, Kindle is not seeking to woo a wide market like Apple is doing with the iPad.  Instead, Amazon is targeting its significant base of loyal Amazon customers who are seeking a convenient way to access Amazon’s content.

The Kindle Fire is also not as elegant as an iPad.  It doesn’t have to be.  it just has to provide access to Amazon’s extensive content.  Just as when Coca-Cola gave it’s vending machines away for free — because Coke™ made its money by refilling their machines. Brilliant!

KEY POINT:
“Never bring a knife to a gunfight” — Amazon is defining it’s own ‘Fire’ power and will likely be a winner because of it.