Originally published: November 12, 2011
Last updated: December 21, 2011 - 3:40am
The low-cost computer tablets coming next week from Amazon and Barnes & Noble connect only over Wi-Fi networks, which reduces costs and also cuts the nation's 3G/4G cellular carriers out of the equation. Other tablets, such as the iPad 2 and several Galaxy Tab versions, however, connect to 3G/4G cellular as well as Wi-Fi, but also have Wi-Fi-only models. So what's behind the decision to support Wi-Fi-only in Amazon's $199 Kindle Fire and Barnes & Noble's $249 Nook Tablet? Part of the answer stems from the way Amazon and Barnes & Noble see their tablets being used. Both see their devices primarily for consuming massive amounts of video, games, e-books and other media, which is best served over a low-cost Wi-Fi connection. "Amazon and Barnes & Noble want people to spend money on their content, not on [carrier] data plans to keep the tablets connected," said Tom Mainelli, an analyst at IDC. "So I don't think they have much interest in offering 3G/4G-enabled media tablets." Neither company has said whether it will eventually offer a cellular connection for their tablets, but there is little financial motivation to do so. Carriers might decide to offer cellular connections and service plans if the Kindle Fire and Nook Tablet become popular, but they might find customers balk over data pricing, data caps and overage charges.
Links to Sources
- Login or register to post comments
- Email this page
Related
- Here’s the secret to Amazon’s, B&N’s tablet strategy
- Amazon Unveils $199 Kindle Fire Tablet
- At $1.7 billion, Nook is worth more than Barnes & Noble itself
- Is there hope for small bookstores in a digital age?
- Is the free Kindle on the horizon?
- E-Book Lending Takes Off
- Nook From Barnes & Noble Gains More E-Book Readers
- Mobile Data Use Surging, but Tablets Largely a Wi-Fi-Only Affair
- UK Bookseller Welcomes Kindle
- Amazon to Sell the Kindle Reader at a Lower Price, but With Advertising Added
- Amazon Kindle Fire is 54.4% of US Android tablets
- Tension mounts in e-reader saga
- Scribd opens up e-Reading on mobile devices
- Soon you’ll be able to use your Nook to buy books in Barnes & Noble stores
- Insider Pushes Ma Bell Beyond Just Phones
Location
Ratings
Login to rate this headline.

