Amazon gearing up to launch 10-inch Kindle Fire in Q2 2012 - report

Posted:
in iPad edited January 2014


Amazon plans to expand its Kindle lineup and more directly take on Apple's iPad with a new 10-inch Kindle Fire tablet set to launch in the second quarter of this year, according to a new report.



Amazon has begun placing orders for the new, larger Kindle Fire ahead of its launch in the coming months, DigiTimes reported . Foxconn is said to have earned original design manufacturer orders, ousting Quanta Computer and Inventec, which are current ODMs for the 7-inch Kindle Fire.



In a separate report, the publication that Amazon has also ordered color e-ink displays for a new 6-inch Kindle model. The new color screens from E-Ink Holdings are expected to begin shipping in March.



After launching at an aggressive $199 price point last year, the Kindle Fire is estimated by IHS iSuppli to have sold 3.9 million units in the fourth quarter of 2011. Another, more aggressive estimate from investment bank Stifel Nicolaus pegged sales at 6 million.



Either of those numbers likely outpaced the vast majority of the touchscreen tablet market. However, the estimates are also well behind the 15 million iPads Apple sold last quarter.







While Apple publicly reveals its iPad sales, Amazon has not given any specific sales figures for its Kindle lineup. The online retailer has said that its collective Kindle lineup was selling more than a million units per week leading up to Christmas, but wouldn't provide any concrete data.



One report from last month indicated that Amazon was already planning to cut orders in half for the 7-inch Kindle Fire at the start of 2012. The company was said to be planning for slower post-holiday sales, as well as the anticipated launch of Apple's third-generation iPad.



[ View article on AppleInsider ]

«134

Comments

  • tallest skiltallest skil Posts: 39,984member
    "They started making tablets. We didn't start making eReaders."
  • razorpitrazorpit Posts: 808member
    I hope so. At this stage in the game I think only Amazon can keep Apple on its toes.
  • pendergastpendergast Posts: 1,358member
    Quote:
    Originally Posted by razorpit View Post


    I hope so. At this stage in the game I think only Amazon can keep Apple on its toes.



    Thus far, they are taking a completely different portion of the market that Apple has also thus far ceded.



    It could be argued instead that the Kindle helps the iPad, as it has disemboweled the market for Android tablets; consumers either get a Kindle (low end entry) or an iPad (high end).



    It's the same reason netbooks didn't hurt Apple; they only hurt the competition.
  • slurpyslurpy Posts: 4,469member
    Yeah.. good luck with that. The Kindle's main selling point is price. If it starts infringing on iPad territory price-wise, its in trouble.
  • lkrupplkrupp Posts: 3,872member
    Quote:
    Originally Posted by razorpit View Post


    I hope so. At this stage in the game I think only Amazon can keep Apple on its toes.



    So you consider the Fire, with no cameras, no 3G, no GPS, an ancient , highly customized version of Android, little in the way of productive apps, as keeping Apple on its toes?
  • dick applebaumdick applebaum Posts: 11,306member


    Will this be limited to mainly US customers as is the KFC?



    Note my new sig in response to this rumor.
  • dick applebaumdick applebaum Posts: 11,306member
    Quote:
    Originally Posted by Pendergast View Post


    Thus far, they are taking a completely different portion of the market that Apple has also thus far ceded.



    It could be argued instead that the Kindle helps the iPad, as it has disemboweled the market for Android tablets; consumers either get a Kindle (low end entry) or an iPad (high end).



    It's the same reason netbooks didn't hurt Apple; they only hurt the competition.



    "disemboweled" ... Don't beat around the bush -- say what you really mean



    Edit: Mmm... seppuku...



  • easy288easy288 Posts: 80member
    Quote:
    Originally Posted by Dick Applebaum View Post


    Will this be limited to mainly US customers as is the KFC?



    Note my new sig in response to this rumor.



    What is KFC? Kentucky Fried Chicken? Kindle Fire C...?



    Huh?
  • michael scripmichael scrip Posts: 1,856member
    Quote:
    Originally Posted by razorpit View Post


    I hope so. At this stage in the game I think only Amazon can keep Apple on its toes.



    Half the size, half the storage, no cameras at all, not as many apps...



    I'm all for competition... pushing others to innovate more.



    But I really don't think Apple is taking notes from Amazon at this point.



    Maybe if Apple made a tiny, cheaper version of the iPad... maybe...



  • carmissimocarmissimo Posts: 837member
    All Apple has to do is sell a $399 iPad which at this stage would be rather easy to do. Make the current iPad available for that price and just keep on selling it while the iPad 3 takes up the mantle at the current price point.
  • easy288easy288 Posts: 80member
    Quote:
    Originally Posted by Carmissimo View Post


    All Apple has to do is sell a $399 iPad which at this stage would be rather easy to do. Make the current iPad available for that price and just keep on selling it while the iPad 3 takes up the mantle at the current price point.



    Don't think that will happen. If Apple does consider selling a lower price iPad, I think they should make up the margins lost by selling the new iPad 3 as the iPad HD Pro (retina display) at $599. However, Apple doesn't usually raise prices for newer products, so this ain't gonna happen.
  • dick applebaumdick applebaum Posts: 11,306member
    Quote:
    Originally Posted by easy288 View Post


    What is KFC? Kentucky Fried Chicken? Kindle Fire C...?



    Huh?



    Oh... I jokingly began referring to the Kindle Fire as "KFC"... makes it appear more popular!
  • xsamplexxsamplex Posts: 214member
    If they [amazon] sell a 10" machine at $250, it more or less forces Apple to drop the cost of entry. That's a good thing for consumers, if not the shareholders.



    It'll be interesting. In fighting Windows, Apple chose the boutique model, and in the final analysis it worked. Apple computers are still around and maybe more popular than ever. And they still command a dear price, relatively speaking.



    With iOS they are the dominant competitor. Will they reduce price to be the "Windows" of tablets, or will they pull in their horns and once again offer the higher-priced quality alternative? From a business standpoint, there is a strong argument they should drop their prices and try to dominate that tablet space.



    I guess we'll find out soon enough...
  • carmissimocarmissimo Posts: 837member
    Quote:
    Originally Posted by easy288 View Post


    Don't think that will happen. If Apple does consider selling a lower price iPad, I think they should make up the margins lost by selling the new iPad 3 as the iPad HD Pro (retina display) at $599. However, Apple doesn't usually raise prices for newer products, so this ain't gonna happen.



    If there is a $399 option (US pricing of course) I think a $599 option is viable. Makes, sense. There would be a market for the $399 version and the $599 model.
  • tallest skiltallest skil Posts: 39,984member
    Quote:
    Originally Posted by easy288 View Post


    Don't think that will happen. If Apple does consider selling a lower price iPad, I think they should make up the margins lost by selling the new iPad 3 as the iPad HD Pro (retina display) at $599. However, Apple doesn't usually raise prices for newer products, so this ain't gonna happen.



    They wouldn't lose anything. They'd STILL make money on every device sold if they took the iPad 2 16GB to $399.



    They'd still make money on every device sold if they took the iPad 2 64GB to $399.



    NO way would Apple start a new iPad at $599, much less call it "iPad HD Pro"?
  • dick applebaumdick applebaum Posts: 11,306member
    Quote:
    Originally Posted by xSamplex View Post


    If they [amazon] sell a 10" machine at $250, it more or less forces Apple to drop the cost of entry. That's a good thing for consumers, if not the shareholders.



    It'll be interesting. In fighting Windows, Apple chose the boutique model, and in the final analysis it worked. Apple computers are still around and maybe more popular than ever. And they still command a dear price, relatively speaking.



    With iOS they are the dominant competitor. Will they reduce price to be the "Windows" of tablets, or will they pull in their horns and once again offer the higher-priced quality alternative? From a business standpoint, there is a strong argument they should drop their prices and try to dominate that tablet space.



    I guess we'll find out soon enough...



    There are a couple of things in play here...



    I would like to see Apple price the low-end iPad 2 at $299-$349 max.



    I suspect they can manufacture a low-end iPad 2 for $200 or less at this point in time.



    As long as the same production capacity is not required for the iPad 3, I believe it would benefit Apple customers and shareholders, alike.



  • michael scripmichael scrip Posts: 1,856member
    Quote:
    Originally Posted by xSamplex View Post


    If they [amazon] sell a 10" machine at $250, it more or less forces Apple to drop the cost of entry. That's a good thing for consumers, if not the shareholders.




    Maybe... maybe not.



    A 10" Kindle Fire is still a Kindle Fire. It will still be lacking many of the features of the iPad... only with a bigger screen this time.



    Apple knows what it's got... a great device with an ecosystem to match. People who want an iPad will get an iPad.



    People who just want "a tablet" might be lured in by the low price of competing tablets... but I don't think Apple views every Kindle Fire sale as a loss of an iPad sale.



    In short... I don't think Amazon will force Apple to do anything.
  • applezillaapplezilla Posts: 941member
    Kindle Anything = Training Wheels for iPad.
  • solipsismxsolipsismx Posts: 19,566member
    Seems lik the logcal way to go but also seems pointless.
  • rogifanrogifan Posts: 10,669member
    Interesting. Don't we keep hearing from so-called 'analysts' that Apple needs to (or will) bring to market a smaller tablet to compete with Kindle Fire? Seriously as long as there is such a huge gap in the number and quality of tablet apps Apple will always be dominant. I've still yet to see data that Kindle Fire was/is eating in to iPad market share. If anything I'm assuming it's eating Android tablets or other Kindle products. Apple has over 140,000 apps just for iPad. How many Android/Kindle/Nook tablet apps are there?
Sign In or Register to comment.