The Kindle Fire could be the first truly successful Android tablet. It touts a very reasonable $200 price tag, a well-curated app store, easy access to Amazon’s cloud-based services, brand trust and recognition.
One of the reasons why I guess it can be a success is because the failing point of many existing 7-inch tablets as that they thought of the iPad as their competition the Kindle Fire instead has embraced a different way.

The device is an Android device and it supports Gingerbread, rather than Honeycomb, Android’s tablet-specific build.

The main features of this new devices are

• Stunning Color Touchscreen
• Magazines in Rich Color
• 100,000 Movies and TV Shows
• Fast Dual-Core Processor
• Ultra-fast web browsing – Amazon Silk (Yet another browser!)
• Children’s Books
• Free Cloud Storage

As you can see the Kindle Fire is a device created for content consumption, not creation — for reading, listening to music and watching video and even more it doesn’t need to have big storage capabilities due to the fact that is uses the Amazon Clouds.
The expectations are that this device will finally give developers a reason to develop tablet apps for Android due to the audience (i.e. the Amazon’s users) that is so big and to the device that is pretty.

Amazon has several advantages over other tablet manufacturers that have tried to compete with Apple. It has an established, built-in audience of loyal customers, whether of the Kindle, its e-books or the wide range of retail goods it sells. All of these give Amazon better brand recognition and loyalty than any comparable manufacturer except perhaps Apple, at least in the United States.
Amazon also deals in a wide range of other media perfectly suited for tablets, including video, magazines, games and apps. It’s customizing Android and its Appstore specifically for its own tablet hardware, potentially solving the fragmentation problem that’s plagued Android on smartphones and tablets.
Finally, Barnes & Noble’s Nook Color showed that customers do want smaller tablets if they can deliver quality media at a low price. Even Hewlett-Packard’s TouchPad death-and-resurrection debacle shows that there’s pent-up demand for a multi-function tablet that’s much less expensive than the iPad.

As soon as the first devices will be shipped the users reaction will make the fortune or the ruin of this device, I strongly believe it can be the first valid alternative to the iPad.