Amazon to Copy Apple’s Strategy with Kindle Fire, Kindle Fire 2 HD Pricing
There are speculations that the 7-inch Kindle Fire tablet will hit a new low price of just $149, or $50 less than what the device is currently selling at, when Amazon debuts a new Kindle Fire 2 tablet with a 1280 X 800-pixel resolution HD display in a few months. The company will sell both tablets side by side, with last year’s model being discounted to offer consumers an easier way to buy into the Amazon ecosystem and the low price will make the Kindle Fire an easier purchase for customers to make.
Rumors of a price drop is originating from DigiTimes.
To expand its market share, the sources believe that Amazon has a high chance of adopting a similar product strategy to Apple, in addition to a new iPad product, Apple continues to sell its previous model at a cheaper price to expand market share into the lower-end segment.
If these rumors are true, this would mean two things. First, it follows Apple’s new iPad pricing strategy where last year’s iPad 2 is selling at a $100 discount compared to the current third-generation iPad. With the launch of the third-generation iPad, for the first time Apple is selling the current model alongside last year’s model, and the new more affordable entry-level pricing is speculated to help Apple compete with low-cost Android tablets.
Second, this would mean that Amazon is not giving up its position on the tablet price war. With Google rumored to be entering the tablet market with a Nexus 7 Tablet announcement at the end of the month at the I/O developer conference, Amazon’s $149 price point would help the company maintain its lead against Android rivals. Google’s tablet has been rumored to be priced between $149 to $249 when released.
Amazon’s new HD tablet would then be priced at the $199 price point that the original tablet debuted at.
With pricing at around $150, the Kindle Fire is beginning to inch closer to the pricing for Amazon’s E-Ink e-readers.