Report: Amazon Kindle Fire Could Drop as Low as $169
Amazon may be releasing a new Kindle Fire 2 this fall, but the better deal could be the original Kindle, if we believe the folks over at DealNews.
If Amazon keeps the Kindle around, which would be a strategy similar to Apple's iPad 2/new iPad idea, the Kindle is likely to drop in price. DealNews says that, based on their market observations, the Kindle is likely to drop to $169, which represents the current lowest for the tablet in the market.
Compared to a new Kindle Fire that is more than likely going to follow the lead of the original Fire and Google's Nexus 7 with a $199 price point, it is uncertain that consumers will perceive a 15 percent discount on a one-year old tablet as a compelling offer. If Amazon keeps the Kindle around, $150 may be a visually and psychologically much more appealing price point that could "reimburse" buyers for the lack of a camera and other upgrades in the Kindle Fire 2.
DealNews said that Amazon has a tradition "of slashing the price of its new Kindles as they're being announced." New Kindles have launched 10 percent to 61 percent cheaper than the initial starting price of their predecessors, the service said. However, with the Kindle, we are talking about a margin and competitive pressure that is greater than the marginal loss Amazon took with its Kindle e-readers. The company will have to strike far more favorable deals to bring down the BOM of the Kindle Fire.
When introduced, the $199 Kindle Fire was estimated to have a bill of materials of $201.70, excluding R&D, marketing and shipping cost.
To be honest, this small reduction in price isn't all that impressive, but is probably announced just to get a few more people buying the OG Fire and get rid of the inventory before the next gen devices come out.
It is a good walkie talkie.
ICE has surpassed iOS in my book. But I'd prefer a 4:3 tablet... if there are no Android takers on that... then an iPad4 is most likely in my future.
i dont think amazon should be in the hardware market at all. they're better off focusing on developing software for other, established platforms which aid in the consumption of their services (media, shopping, etc.) ironically enough the fire was developed for just this purpose, but there are better options for consuming amazon's services.
Well if you want to put it that way, the Amazon Kindle Fire COULD drop as low as $1... Not likely but it COULD happen.