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Amazon (AMZN) Boosts Tablet Portfolio With New Fire 7 Devices

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Amazon (AMZN - Free Report) released the next-generation Fire 7 and Fire 7 Kids tablets, equipped with more innovative capabilities and Alexa compatibility.

The latest tablets feature a 7-inch touchscreen, durability and a 40% longer battery life offering up to 10 hours of entertainment. They also double the RAM and provide a 30% faster quad-core processor.

Users can watch or download movies and shows from entertainment apps like Disney+, Netflix, Prime Video, Hulu and HBO Max. They can also access social media apps, such as Facebook, Instagram and Tiktok. Further, they can browse the web, play games and make Zoom and video calls.

eBook readers can enjoy the tablet to access millions of books from the Kindle Store and avail a three-month free trial of Kindle Unlimited.

Further, Fire 7 tablets hold the Carbon Trust’s “Reducing CO2” Product Carbon Footprint Label, which makes devices more efficient for use.

The new Fire 7 Kids comes with a two-year guarantee and a one-year subscription of Amazon Kids+, offering thousands of ad-free apps, books, games, videos and more. With the Kids tablet, Amazon aims to focus on providing fun and educational content to the younger generation.

With the recent tablets, Amazon expanded its tablet offerings and Fire devices portfolio. Moreover, the launch of Fire 7 Kids tablet bodes well for AMZN’s strong efforts toward strengthening its kids-specific devices portfolio.

Growing Tablet Market

We believe that the latest move augurs well for Amazon’s growing efforts toward expanding its presence in the booming tablet market.

The underlined market is witnessing significant growth in the rising adoption of tablets across various sectors, including healthcare, education and entertainment. The growing remote working and online learning trend is also fueling growth in this market.

According to the Business Research Company report, the tablet market is expected to hit $146.9 billion in 2026, witnessing a CAGR of 15% between 2022 and 2026.

In the same period, the tablet market share is likely to rise by 42.02 million units in 2026, seeing a CAGR of 4.61%, per a Technavio report.

Rising Competition

In this upbeat scenario, Amazon faces severe competitive pressure from tech giants like Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) as they are also leaving no stone unturned to expand their market share.

Apple has been gaining momentum in the tablet space with its four different types of iPads, namely the standard iPad, iPad Mini, iPad Air and iPad Pro. AAPL’s tablet portfolio also includes kid-friendly tablets to cater to the needs of the younger generation.

Recently, AAPL added the fifth-generation iPad Air to its tablet portfolio. iPad Air features the M1 processor and an ultrawide FaceTime camera for video calls, inclusive of Apple's Center Stage feature. The latest model is also equipped with 5G connectivity. Parents can buy iPad Air for their children if they want to provide a premium tablet with quality content.

Alphabet’s Google is riding on its Pixel Slate tablet. The device is a 2-in-1 model with a Chrome tablet and a Chromebook in one setup. Further, GOOGL offers an Android tablet experience to kids with its Google Kids Space. With this, kids can access apps, books and videos according to their interests on the selected tablets, including Lenovo, Medion, Nokia, Multilaser and so on.

Currently, Alphabet is preparing to intensify the competition in the tablet market. At the recent I/O developer conference, GOOGL talked about a new Pixel Tablet, featuring its own Tensor chip. The Pixel Tablet will be released next year.

Zacks Rank & Stock to Consider

Currently, Amazon carries a Zacks Rank #5 (Strong Sell).

A better-ranked stock in the retail-wholesale sector is AutoNation (AN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AutoNation has gained 12% in the past year. The long-term earnings growth rate for AN is currently projected at 24.7%.

In-Depth Zacks Research for the Tickers Above

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Alphabet Inc. (GOOGL) - free report >>