Kindle Fire could get $50 price cut when new Amazon tablets launch

Kindle Fire could get $50 price cut when new Amazon tablets launch

Summary: Amazon may slash the price of the Fire by 25 percent when it delivers its next generation of tablets later this year.

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TOPICS: Tablets
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Amazon's Kindle Fire rocketed to success during the last holiday shopping season, its $199 price tag serving as a great alternative to the iPad's $500 one. Since then, however, sales have softened considerably, and they may take a further blow if Google releases its own 7-inch Nexus tablet later this month as expected.

So what's Amazon to do? Well, do what Amazon does best. According to rumormonger extraordinaire DigiTimes, the company is planning to slash the price of the Fire by 25 percent when it delivers its next generation of tablets later this year. In other words, you'll be able to buy the 7-inch Kindle Fire for a mere $149.

DigiTimes claims Amazon will be able to do that, in part, because it will be introducing a new 7-inch slate along with a long-rumored 10.1-inch model. The new 7-inch tablet would boost screen resolution to 1,280x800 and retain the Kindle Fire's original $199 price.

The strategy is straight out of Apple's playbook: dropping the price of the previous generation's hardware in order to expand its market share. It worked with the iPod and iPhone, and Apple's already doing it with the iPad, continuing to sell the iPad 2 for $399. The move could also help blunt whatever momentum Google could achieve with the Nexus tablet.

Would you be more likely to buy a Kindle Fire if it were $50 cheaper? Why or why not? Let us know in the Comments section below.

Topic: Tablets

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16 comments
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  • This guy plays hardball

    Anybody who underestimates Jeff Bezos deserves whatever happens to them. He has obviously decided that he wants to own the low-end content-playback space, so that he can also own the content-sales space. And he's willing to give away his razors to sell his blades. That's going to be tough to compete with. At $149, the Kindles are competitive with the 'overstocks' that are being sold by the pound on Woot.
    Robert Hahn
    • I've been told they sell at a loss is this so?

      If so how much of a loss per unit? And based on that how much "stuff" does Amazon have to sell per unit to make or even hit the break even point? If you count songs and movies even at the selling price of a few dollars Amazon does not get the whole amount but has to share with the owners of said music/movies.

      Pagan jim
      James Quinn
      • Isn't saying

        I doubt that's a secret we'll ever learn. My guess is that they aimed to cover the variable cost of producing the device, plus an allowance for the small fortune they spent on TV advertising for it. You're right, though: Amazon's operating margins aren't that high... about 1.5%. So they need to sell about 60 bucks' worth of stuff for each dollar they subsidize the device. If I ran the place, I'd be scared to subsidize it at all. That's a pretty big nut to have to cover.
        Robert Hahn
      • Allegedly, KF was selling at a $10-$20 lost

        So now that will add $50 to the red.
        wackoae
  • No because it's a brick. Honestly I wouldnt keep one that was given to me.

    Was interested at first until I physically touched one. What a piece of crap. Not worth even $50. They need some serious improvement in the next model. I don't think I could buy any amazon hw after that. I'll probably just get a regular W8 and use the kindle reader app.
    Johnny Vegas
  • wonderful

    A lower price would be great for me and my family
    Sarah-moore
  • DigiTimes

    As reliable a source of information as a old drunk
    oldgeek143
  • The strategy is straight out of Apples playbook

    Indeed. If true then it's a good move on their part. Bad for other Android OEMs and Windows RT tablet coming in at $600-$700. Apple will continue to dominate from the top down with their iPad and Amazon will continue sewing up the very bottom end of the market.

    btw, what ever happened to the Fire displacing the iPad and becoming the new "people's tablet"?
    dave95.
    • Like most products it is "certain" people's tablet...

      However again like most products it is not "All" people's.

      Pagan jim
      James Quinn
      • Correct

        Just poking fun at some of the sensationalist blog posts from J. Perlow and others who immediately after the Fire launched made the following statements:

        [i]"However, at an entry point of $500, the iPad (and other full size Android tablets that followed) cannot ever be the Peoples Tablet.[/i]

        [i]"While cheaper than most desktops and laptops, iPad is still too expensive to stay the market leader. "[/i]

        [i]"I beleive that because of the price factor we are looking at potentially a much larger customer base than even the iPad"[/i]
        dave95.
  • Short Answer, No

    I received a Kindle Fire as a Christmas gift last year. I have had a Kindle since they first came out a few years ago, and have always been a fan being an avid reader. The Kindle Fire though is just an OK product, and as a general purpose tablet, is less than OK. Surfing the Internet on it is very slow (think dial up modem slow), and the 7" screen is just too small for web sites. That, and many web sites do not display correctly and the touch navigation does not work well on web sites. Another annoyance is my Kindle Fire likes to change the orientation from portrait to landscape on its own. Sometimes the slightest movement will trigger the screen flip and then you have to flip it back. Stop it !. And as an e-reader, it is no longer "read anywhere" with the LCD display. If I were to buy another Kindle, it would be one of the newer "older" models to be used as an e-reader and nothing else.
    Perhaps newer models will improve over the current Fire, but I am not impressed.
    jpr75_z
    • But... sputter... but

      We have been continuously assured by ZDNet authors that the Kindle Fire is a perfect substitute for the iPad, except it costs $300 less. Like the article above: "its $199 price tag serving as a great alternative to the iPad???s $500 one." You mean that's not true? You can't spend $199 and get the same thing you'd get for $500? Who knew?
      Robert Hahn
  • Kindle fire

    I would pay the full price for the Fire if it had 3g or 4g in addition to wi-fi.
    bamakathy
  • Love my Fire

    I have owned my fire for 8 months and I love the little guy. Can it do all my IPAD can do - not exactly. I do surf the web, listen to music, play games, watch movies, etc. It does not have the 32gb the IPAD has, but it did not cost me $600. I do not expect it to perform like its more expensive cousin. I really do love the 7" form factor though, I can hold it with one had and use the other to type, play a game, etc. The IPAD has to be propped up or laid in your lap. Also, I prefer my movies in wide screen. I have not had the issues the previous person had; my experience has been great and I look forward to getting more tablets as they improve them.
    Geekygirl68
  • Like my Fire, wouldn't buy it again

    I use mine for books, manuals, browsing, Facebook, Netflix. Wouldn't buy it again, as I can't use it for pictures, Skype, etc. However, the new tablet at the same price (or the Blackberry Playbook) is a good deal. Probably won't buy any thing soon. Instead I'll wait till I can upgrade my phone to an iPhone so I'll have it with me at all times. havin said that, 7-inch form factor rocks!
    JimboNobody
  • kindle fire

    I have the original kindle and love it. I heard about the price drop of the fire and ran out to get one and everywhere I went they were sold out. I'll keep looking if I can find it for $149.99 i am ready to purchase.
    sandye1952@...