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Amazon (AMZN) Focuses on Kids, Launches Fire HD 10 Kids

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Amazon (AMZN - Free Report) has unveiled Fire HD 10 Kids Edition, an advanced tablet built specifically for children. The tablet comes with storage capacity of 32 GB with the option of storage expansion up to up to 256 GB.  With this move, the company has expanded its tablet range for kids.

The latest launch is in sync with the growing concerns of the parents regarding the content their kids are interacting with. The new addition allows parents to customize and personalize the settings of the tablet as per the needs of their children.

Further, the tablet looks and feels like a real tablet which is what the kids crave. Further, it comes with free subscription of Amazon FreeTime for one year. The kids (ranging between the ages of 3-12) will have access to a huge collection of more than 15K entertaining books, videos, educational apps and games.

With all these features, the company will be able to cater better to the kids as well as parents. This is likely to drive its tablet sales figure, consequently aiding revenue generation.

Additionally, the recent move will aid the company in reinforcing its presence in the market for tablets.

Coming to the price performance, shares of Amazon have returned 45.5% on a year-to-date basis, outperforming the industry’s rally of 23.5%.



Growing Focus on Kids

Amazon’s strong efforts in the development of kid-oriented smart devices will continue to help it cater to the increasing demand for these products in schools and at homes globally.

The company has expanded its product portfolio for kids with the latest Fire HD 10 Kids Edition. The portfolio already contains tablets of previous edition namely, Fire HD 7 & Fire HD 8 with storage capacity of 8 GB and 16 GB, respectively.

Fire HD 10 contains new and popular books, cartoon series, comics and games from Disney, Nickelodeon, Amazon Studios, PBS Kids, HarperCollins and Macmillan. Featured content includes Star Wars: Puzzle Droids, Teen Titans Go!, Splat the Cat, Fruit Ninja, Lost in Oz and Crossy Road.

Apart from these tablets, the company also introduced FreeTime on Alexa, exclusively for kids. Further, Amazon also launched the Echo Dot Kids Edition.

We note that all these endeavors will aid the company in improving market share by serving the new generation of kids well.

Tablet War Intensifies

Amazon’s continuous focus on expansion and innovation of its product portfolio bodes well for its improving market share across all the segments.

The recent move is in sync with the company’s strategy to expand its tablet portfolio. This will aid it in gaining traction in the rapidly expanding tablet market and also counter the competition from the likes of Apple (AAPL - Free Report) , Alphabet’s (GOOGL - Free Report) Google, Lenovo, Samsung and Huwaei. Further, Microsoft (MSFT - Free Report) is reportedly set to roll out its low cost Surface tablets.

All these companies are making robust efforts to strengthen their position in the global tablet market where Apple holds a dominant position. However, Amazon gains a competitive edge in the market with its recent launch and special focus on kids.

Per the data from Research and Markets, the global tablet shipment is expected to hit 187 million by 2024.

Also, the company has recently rolled out “Show Mode”, a new feature on Fire HD 8 and Fire HD 10 tablets. This allows the users to use voice commands via Alexa to check important news, camera feeds, updates on weather, make video call, play movies and Audible books.

Further, it comes with Show Mode Charging Dock which automatically connects the tablet with Show Mode and keeps it connected while moving from one room to another.

Consequently, we believe Amazon is well poised to gain momentum in the market backed by these innovative products.

Currently, Amazon carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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