Amazon is transitioning its Fire tablet lineup from Fire OS to standard Android, codenamed “Kittyhawk,” to enhance hardware and software integration and compete with Apple and Samsung. This shift addresses developer fatigue by eliminating the need for separate app versions for Amazon's Appstore and responds to consumer demand for access to the Google Play Store. The new Android-based tablets, set for release in 2025, will likely increase app availability and capture a share of the premium tablet market.
Key semiconductor partners expected to benefit from this transition include Qualcomm, Samsung, and MediaTek, as Amazon's adoption of standard Android may lead to increased demand for their chipsets. Additionally, the move strengthens Google's position within the ecosystem, potentially stimulating growth for its cloud and AI services, despite Amazon's decision to exclude Google's proprietary applications.
Investors should monitor Qualcomm and MediaTek for semiconductor exposure, as well as Amazon's AI tools and cloud partnerships for potential growth. Amazon's current global tablet market share is 8%, which could expand with the new model, although risks include project delays and regulatory scrutiny regarding data privacy.