Amazon.com, Inc.(NASDAQ:AMZN) new Kindle Fire tablets launched on Thursday was received with enthusiastic response by the market sending its shares up.
The Internet retailing giant unveiled four new tablets PCs under the Kindle Fire range, which come in varying sizes.
The larger ones have 8 inch screens, compared with the 7 inch screen of it earlier version and 9.7 inches screen of the current iPad from Apple.
The basic model of the smaller Kindle Fire, which still has a 7 inch screen, will retail for $159, Amazon said. The basic model of the larger Kindle will retail at $299, which is still about $100 cheaper compared to the cheapest iPad.
Analysts said that Amazon, which is a recent entrant to the tablet PC market, is set to compete with Apple at all levels. They have already started comparing the Kindle Fires with Apple's iPads.
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Apple is expected to launch an iPad Mini sometime later this year to offer a cheaper alternative to customers.
Android has a firm grip on the tablet market with almost all such PCs running on Google's operating software, but it has not been able to upstage Apple's operating system which is still clearly the leader.
According to IHS iSuppli, seven of every ten tablets sold in the United States are iPads. Amazon is set to change this and has tweaked the Android operating system considerably for its Kindle Fires.
While trying to provide the same rich features as the iPad, Amazon is trying to provide more content to users at a cheaper price.
Shares of AMZN soared 2.10% to $251.38 on Thursday and made an all time high of $252.70 earlier in the session. The stock is up another 0.50% in pre-market trading.