Amazon announces $499 Kindle Fire HD 4G LTE with $50/year data plan

Posted:
in iPad edited January 2014
Amazon took a direct shot at Apple on Thursday when it unveiled its new Kindle Fire HD 4G LTE, with the same $499 starting price as Apple's current generation iPad. But the main selling point is a new $50-per-year, 250-megabyte-per-month 4G LTE data plan.

Though it has the same price as a third-generation iPad with Retina display, the new Kindle Fire HD with 4G LTE has a slightly smaller 8.9-inch display. However, Apple's entry-level third-generation iPad lacks 4G LTE — a feature that carries a $130 premium.

Amazon's new high-end Kindle Fire HD also has twice the capacity of Apple's entry-level iPad, packing in 32 gigabytes of storage for the $499 price. The next closest device in Amazon's revamped Kindle lineup is the $299 16-gigabyte Kindle Fire HD, which also has an 8.9-inch display but does not feature cellular connectivity. A 64-gigabyte Kindle Fire HD is also available for $599.

The biggest bombshell dropped by the online retailer on Thursday is the data plan for the new Kindle: it will offer 250 megabytes of data per month for just $50 a year, a price well below what carriers AT&T and Verizon charge for using Apple's iPad on their wireless networks.

The Amazon 4G LTE package features high-speed wireless connectivity capped at 250 megabytes per month, and also comes with 20 gigabytes of cloud storage and a $10 credit to the Amazon Appstore.

Kindle


Amazon Chief Executive Jeff Bezos compared the new Kindle Fire HD with 4G LTE to Apple's third-generation iPad with LTE connectivity. He noted that an iPad owner will pay $959 with a data plan in the first year for an iPad, while the Kindle Fire HD will cost customers just $549.

Details on how the new data plan will work, including the cost when users go over the 250 megabyte cap, were not revealed as part of Thursday's presentation. When the first iPad launched, AT&T offered data plans starting at $15 per month, or $180 per year, for 250 megabytes of data.

Though it was announced on Thursday, the new Kindle Fire HD 4G LTE won't ship until November 20.

Amazon
Amazon CEO Jeff Bezos at Thursday's press conference in California. Image via CNet.


Bezos said Amazon looked into making a tablet for $499, and the company decided 4G LTE connectivity is the "ultimate tablet feature." The company developed its own cellular modem that's smaller and supports all 10 wireless bands.

The 8.9-inch Kindle Fire HD with 4G LTE will be the only Kindle Fire model with wireless cellular connectivity. Amazon also announced on Thursday a Wi-Fi-only 8.9-inch Kindle Fire HD for $299, a 7-inch Kindle Fire HD for $199, and an upgraded version of last year's Kindle Fire for $159. The company also launched a new $119, e-ink-based Kindle Paperwhite with a backlight, and upgraded the display on its regular Kindle while lowering the price by $10 to $69.
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Comments

  • Reply 1 of 124
    wovelwovel Posts: 956member
    Be interesting to see if downloading from Amazon is free and what the overage fee is over 250MB.
  • Reply 2 of 124


    This is just the right kind of competition to force Apple to keep on it's toes and step up it's game. With a little maneuvering, I'm sure they can offer a similar data-only yearly package for their customers too.


     


    I am interested to see how the 7" Fire model will compare to the rumored 7" iPad "mini".

  • Reply 3 of 124
    solipsismxsolipsismx Posts: 19,566member
    If the YoY Kindle releases have taught us anything it's not to underestimate Amazon. This sounds like a great deal. I go on for hours about how the HW, usability, SW, ecosystem, etc. are inferior to the iPad but when you compare the general features and service this $499 Kindle Fire HD looks very attractive.

    I really like the $50/year for 250MB of 4G LTE data. I pay Verizon $240/year and I've never come close to using 250MB in a month.
  • Reply 4 of 124
    focherfocher Posts: 687member


    The problem is that data plans don't make sense with the way they are currently designed. Giving a quota of 250MB for an LTE device just means you're wasting dollars on integrating LTE. It also costs battery life. You sure as hell can't get any benefit from having it be LTE.

  • Reply 5 of 124


    Bold maneuver by Amazon ... essentially forces consumers to ask/answer, "Is the Apple ecosystem worth ~$400 more than the Amazon ecosystem?"  Amazon doesn't make money if they don't offer/deliver content people want.


     


    The more entrenched you are with MacBooks, iPads, iPhones, Apple TVs, the easier it is to say, "No thanks, Amazon" ... but it'll definitely put the undecided to the point.


     


    Good news: there is still competition despite all the doom&gloom surrounding the Samsung verdict.

  • Reply 6 of 124
    solipsismxsolipsismx Posts: 19,566member
    focher wrote: »
    The problem is that data plans don't make sense with the way they are currently designed. Giving a quota of 250MB for an LTE device just means you're wasting dollars on integrating LTE. It also costs battery life. You sure as hell can't get any benefit from having it be LTE.

    I don't follow. How is there no benefit from having the option to use cellular data connectivity?
  • Reply 7 of 124
    cpsrocpsro Posts: 3,192member


    Still no GPS?


    Bezos doesn't care about making money on the HW because, in part, with the introduction of each new generation, support for the previous generation will get dumped. If Amazon charged much more, owners of the previous generation would become irate.

  • Reply 8 of 124

    Quote:

    Originally Posted by SolipsismX View Post





    I don't follow. How is there no benefit from having the option to use cellular data connectivity?




     I think he meant there's no benefit to LTE specifically.  It could easily be 3G, if you are going to limit yourself to 250 MB/month.  I'm not sure I entirely agree, but it is a reasonable thought. 


     


    If 3G gives you 4Mbps and LTE gives you  20 Mbps, you could use up the entire 250 MB in 500 seconds (8 minutes) on 3G and less than 2 minutes on LTE. 

  • Reply 9 of 124
    blastdoorblastdoor Posts: 3,255member


    Wild -- I wonder what carrier is being used, and if Amazon is somehow subsidizing the LTE coverage. If not, then Apple should go kick AT&T and VZ in the nuts and demand a better deal for iPad users. 

  • Reply 10 of 124


    Wait… high-speed LTE, capped at only 250MB a month? That's 30Mb a day… I can burn through that much with some light news browsing...


     


    And 20Gb of Cloud Storage? That doesn't add up…


     


    You only get 3GB PER YEAR of data transfer @ 250MB a month… how can you make full use of a 20GB cloud drive?


     


    It doesn't sound like a great deal to me, frankly… just because AT&T is grossly overcharging for mobile data doesn't make this deal that much better...


     


    (AT&T charges $15 a month for 250MB a month… an outrageous fee. But then $30 for 3GB… monthly, but still $20 less than Amazon charges over a year for the same number of GB…)

  • Reply 11 of 124


    So if you watch one HD movie how much data will you use on your 250MB plan?

  • Reply 12 of 124


    Yeah I was wondering the same thing....are they paying all 10 carriers a fee to use their cell towers?

  • Reply 13 of 124
    postulantpostulant Posts: 1,272member
    Wait… high-speed LTE, capped at only 250MB a month? That's 30Mb a day… I can burn through that much with some light news browsing...
    No. That's 8.3 MB per day...
  • Reply 14 of 124

    Quote:

    Originally Posted by Proximityeffect View Post


    So if you watch one HD movie how much data will you use on your 250MB plan?



     


    The real question is: how many minutes of that HD movie can you watch before your 250MB is gone?  Enough to get past the opening credits I'd guess...

  • Reply 15 of 124
    focherfocher Posts: 687member

    Quote:

    Originally Posted by SolipsismX View Post





    I don't follow. How is there no benefit from having the option to use cellular data connectivity?


    I wasn't referring to cellular. I was referring specifically to using LTE (as opposed to 3G or even EDGE). If the data plan doesn't support using very much data, then a more costly and less power efficient cellular technology doesn't make sense.

  • Reply 16 of 124
    So if you watch one HD movie how much data will you use on your 250MB plan?

    The average video bitrate of an Amazon Unbox download equals 2500 kbit/s; this means that a two hour movie consumes roughly two gigabytes (2 GB) of storage space. (1) Therefore, you should be able to watch the first fifteen minutes.

    1. Unattributed. No Published Data provided. Amazon Instant Video. Wikipedia.
  • Reply 17 of 124


    Come on atleast compare it the same. an ipad 3 with lte is $729 with 32g compaired to $499 with lte amazon fire hd.   The included plan doesnt matter since its still so much cheaper then the ipad.  How low the price is you can add on a data package a month and be at the same price of an ipad lte 32 gig model without one.

  • Reply 18 of 124

    Quote:

    Originally Posted by Cpsro View Post


    Still no GPS?


    Bezos doesn't care about making money on the HW because, in part, with the introduction of each new generation, support for the previous generation will get dumped. If Amazon charged much more, owners of the previous generation would become irate.





    This doesn't make sense. Amazon Prime will still be supported, so will Kindle books and I am assuming the internet will still be there, so how is one generation 'incompatible' with another?

  • Reply 19 of 124
    solipsismxsolipsismx Posts: 19,566member
    focher wrote: »
    I wasn't referring to cellular. I was referring specifically to using LTE (as opposed to 3G or even EDGE). If the data plan doesn't support using very much data, then a more costly and less power efficient cellular technology doesn't make sense.

    I guess they could include only 4G LTE with no support for any 3G or 2G* cellular technology but I've never seen such a device. Still, even if they do I don't see how 3GB for $50 is a bad deal over a year. As I stated earlier I pay $20 a month and never come close to 250MB on my iPad.

    LTE doesn't use more data, it just loads faster so you can potentially get more completed faster. Sure, it gives the option of getting higher quality content in the same time frame than with a slower connection but if that is something to complain about then why aren't we up in arms about 3G, modern web pages, or data on phones in any regard. An email is an email. Regardless if it's dial-up or 4G LTE the file sent is the same size.


    * 2G would only be relevant to GSM-based networks since CDMA is used for voice, not data.
  • Reply 20 of 124
    sflocalsflocal Posts: 6,092member


    Hmm... interesting.  I didn't realize I was paying that much per year to use my 4G iPad 3!  Oh wait... sorry, I'm only paying for the 4G plan only when I need it, so that means I'm not paying that.



    Would be interesting if Amazon gives the user the option to not pay for the 4G, unless they need it.  What market is Amazon shooting for with it?  I mean, a regular user would not want to use the wireless connection to stream a video / music without getting socked on overcharges.  The Kindle doesn't have the same kind of iOS ecosystem where perhaps an app for business connections would come into play.  So I don't think Kindle users would be getting much benefit out of it outside of "OMG, a new book came out that I just have to have while in the middle of nowhere with no WiFi connection.



    I think it's more a curiosity than anything else.  Fandroids and iHaters just just lick up anything and pretend it's "healthy competition" for Apple.  Wutever.

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