From how I see it, form factor is never a problem. The only problem is the software and services around a given screen size. If you have the right stack for it, you will win, if you don't, you will lose just like the Playbook.
Amazon is going with both the 7-inch size, because it knows it can satisfy its customers with the content it has and make them buy more. That doesn't mean that other 7-inch tablets will start selling like hot cakes.
The same is true of the 10-inch tablet as well. No one before Apple could make a 10-inch tablet work. That doesn't mean that the 10-inch size was not good. Even after other OEMs learned how you can make it work, they didn't have the ecosystem around it.
Amazon already has a sufficient ecosystem to sell it tablets, while others do not.
At the end of the day, SOFTWARE RULES!
In the tablet world, 7-inch screens are tweeners that users have little use for. If Amazon’s Kindle Fire doesn’t make 7-inch tablets stick nothing will.
Let’s face it: The 7-inch screen is a bit confusing. It’s not big enough for a full screen browsing experience and small enough to not be all that much different than some smartphones with 4-inch screens.
It’s a tweener. Sure, some folks like a smaller form factor, but Samsung’s 7-inch
Galaxy Tab isn’t exactly lighting up the sales charts. RIM’s PlayBook is increasingly looking like a disaster. When you walk into Best Buy the corner with the 7-inch tablets looks a bit deserted. Perhaps Amazon’s $199 price tag will reinvigorate demand for 7-inch tablets.
Photos: Amazon’s three new Kindles
Amazon’s 2011 Kindle, Kindle Touch and Kindle Touch 3G (hands-on photos)
Amazon’s mission is to save the 7-inch tablet category. If Amazon can make a go of the Kindle Fire perhaps 7-inch tablets will stick around. But if Amazon launches a 10-inch Kindle Fire and sales of the smaller version tank it’s safe say that 7-inch tablets are going to face extinction.
In other words, there’s an inflection point for 7-inch tablets. Amazon will have a lot to do with which way this form factor goes.
Also: Amazon’s Kindle Fire just nuked the tablet market: Winners and losers | Biggest story from the Kindle Fire presser: Silk browser | Amazon Silk - The biggest Kindle innovation is not hardware, it’s software
With Kindle Fire, Amazon looks to burn down Apple’s house (first impressions) | CNET: To beat Apple, Amazon’s trying to be Apple | The Amazon Kindle Fire is no iPad Killer
CNET live blog | Amazon’s Bezos unveils Kindle Fire; color tablet computer | Amazon’s Kindle Fire; At $199, finally a viable college tablet | Amazon’s Bezos unveils Kindle Touch, $99; Kindle, $79 | CNET: Amazon unveils trio of Kindle e-ink readers | Nook vs Kindle Fire specs | iPad vs Kindle Fire specs
