Recall the industry pundits who forecast the demise of the Kindle when the iPad was launched in 2010?  Fast forward to 2012 and that clearly hasn’t happened. Amazon has thrived by focusing on what it does best – delivering the best reading experience at a great price.  My friends stubbornly argue that their iPads provide a superior reading experience, but when was the last time you saw someone reading on iPad on the beach. Sorry, but E Ink is hands-down better for reading than backlit screens.

This fall, Amazon took the fight to Apple (and the iPad) with the launch of the Kindle Fire at a ridiculously low $199 price point. At the time, I was skeptical because of  a poor experience with earlier versions of Google’s Android operating system.  Still, I put in an order for the Fire because, “how can I lose at $199?”   

Early tech reviewers panned the Fire because of what it isn’t, a general purpose computing, communication, and entertainment device – i.e. an iPad.  In particular, the Fire has a smaller screen, less memory, fewer apps -- and gasp -- no front and rear facing cameras.   Despite some rough edges, I quickly realized that Amazon had once again delivered a winner by focusing on their strength -- media consumption.   And by eliminating features that don’t contribute to media consumption – such as front and rear facing cameras – Amazon was able to deliver a device at a an affordably low $199.  Yes, I know that the Fire is still subsidized by anticipated content purchases, but the point still stands.

So, as 2012 gets underway, Amazon has emerged as the leading contender to Apple in the tablet wars.  You need proof?  Analysts project that Amazon will sell 5 million Kindle Fires in Q4 of 2011 as compared to the 10 million iPads.  The subtlety in the story is that Amazon has accomplished this in a very Apple-like fashion; by recognizing it’s strengths and confidently holding to a “less-is-more” strategy.