In a quiet acquisition deal, Amazon is purchasing Yap, a speech-to-text startup that may find its voice recognition technology in future Kindle products.
“Yap is truly a leader in freeform speech recognition and driving innovation in the mobile user experience,” says Paul Grim of SunBridge Partners, which funded Yap in 2008.
“Yap’s technology may give Amazon the ability to add voice controls to its tablets capable of understanding far more than the rudimentary commands currently supported by Android software, potentially allowing the company to erode Apple’s dominance,” reports Forbes.
Apple has yet to make a move toward installing Siri on its iPad, so Amazon could get a jump start. “If Amazon puts Yap’s technology to good use and releases tablets with intuitive voice recognition in the near future, it may give Android-powered tablets a stronger handhold in the market,” suggests the article.
Amazon CFO Tom Szkutak is predicting record sales of the Kindle and Kindle Fire. However, the company also anticipates a lag in revenue after initial sales of the devices, as consumers get acquainted with their machines before purchasing content for them.
“Much of the profit from these products would come from digital purchases by consumers post-sale,” reports The Next Web.
“Once a customer has purchased a device, what else do they buy? We certainly have some data now that we didn’t have prior to the launch [of the ad-based Kindles]. Once the customer purchases the Kindle and are carrying around this massive selection at their fingertips, they buy more content,” said Szkutak.
In a related Geek.com post, it was noted that the Kindle Fire may become the best-selling Android tablet ever, as pre-orders continue to flood in.
Amazon is producing “millions more” tablets to match the demand that has overwhelmed the company since announcing the slate a month ago.
The Fire will sell for $199, possibly making it an attractive alternative to Apple’s iPad, which starts at $499.
Recent speculation has suggested that Apple will produce an “iPad mini” to compete with the $199 price tag of the Amazon Kindle Fire, but many analysts doubt the possibility.
For one, if Apple is looking to compete with the Kindle Fire — which it has already denounced as a threat — it would have to compete in price, not size. A recent study showed that two-thirds of consumers want 10-inch devices while only 9 percent want a 7-inch tablet.
“We expect Apple to maintain its premium price point on tablets,” wrote Forrester analyst Sarah Rotman Epps. “Apple will not allow Amazon to dictate the terms of competition — Apple makes its own rules.”
Additionally, the new size would complicate the development of apps, which have been specifically designed for the 3.5-inch and 9.7-inch displays of current Apple devices.
And the final reason: “Steve Jobs emphatically stated that 7-inch tablets are too small for a pleasant touchscreen experience,” writes Wired.
Amazon’s launch of the Kindle Fire tablet may have an impact on Netflix, since the new tablet will make it easier for users to watch streaming video content via Amazon.
“With its $199 price point the tablet could sell like crazy this Christmas,” reports Forbes. “Users will be encouraged to buy Amazon Prime in order to speed their Amazon purchases and Prime just happens to come complete with Amazon’s streaming video service.”
The decision for consumers between Amazon Prime and Netflix will likely be based on pricing and variety of content offerings.
Amazon Prime beats Netflix on price, set at $80 a year ($6.67 per month), while Netflix streaming costs $8 a month.
Netflix, however, has more variety of content with 51,000 titles currently available for streaming, compared to Amazon’s 11,000.
Amazon may soon be able to compete in this regard with added content from Fox and CBS deals. Netflix has similar deals with Fox and CBS and a new DreamWorks Animation deal, but it will lose movies from Sony and Disney with the loss of Starz.
Both companies may press Hollywood to license more content for streaming, but continuing to pay more for films could potentially break Netflix, while Amazon has other sources of revenue to cover costs.
In a quiet acquisition deal, Amazon is purchasing Yap, a speech-to-text startup that may find its voice recognition technology in future Kindle products.