Amazon set to introduce 'five or six' new Kindle Fire models - report
Amazon is expected to dramatically increase its Kindle Fire tablet lineup from just one model to five or six, according to a new report.
Demos Parneros, president of U.S. Retail for Staples, said Amazon is gearing up to introduce as many as a half-dozen stock-keeping units, or SKUs, for new Kindle Fire models, according to Reuters. The new models are expected to be available in different sizes, including a larger 10-inch model that would more directly compete with Apple's 9.7-inch iPad.
It's likely that Amazon will not introduce up to six distinct Kindle Fire models. Instead, it's plausible that the models will offer varying levels of capacity, with more storage, or connectivity, with potential features like 3G or 4G LTE wireless.
Since the launch of the 7-inch Kindle Fire last year, there have been reports suggesting Amazon was exploring larger screen sizes of 8.9 inches and 10.1 inches for future models. The new hardware is rumored to debut later this year.
When the new Kindle Fire models debut, the existing model is expected to remain available at a discounted price of $149. That would undercut the new 7-inch Google Nexus 7 by $50.
For now, the Kindle Fire is available in only one model and once screen size at once price: $199. It debuted with a a strong start, but demand quickly collapsed, as customer satisfaction with Amazon's low-priced device was about half that of Apple's third-generation iPad, according to research from ChangeWave.
Amazon also stepped up competition with Apple earlier this month when the retailer announced its new GameCenter social network for Kindle Fire games. The service, compatible with popular titles like "Temple Run" and "Doodle Jump," is very similar to Apple's own Game Center for iOS.
Demos Parneros, president of U.S. Retail for Staples, said Amazon is gearing up to introduce as many as a half-dozen stock-keeping units, or SKUs, for new Kindle Fire models, according to Reuters. The new models are expected to be available in different sizes, including a larger 10-inch model that would more directly compete with Apple's 9.7-inch iPad.
It's likely that Amazon will not introduce up to six distinct Kindle Fire models. Instead, it's plausible that the models will offer varying levels of capacity, with more storage, or connectivity, with potential features like 3G or 4G LTE wireless.
Since the launch of the 7-inch Kindle Fire last year, there have been reports suggesting Amazon was exploring larger screen sizes of 8.9 inches and 10.1 inches for future models. The new hardware is rumored to debut later this year.
When the new Kindle Fire models debut, the existing model is expected to remain available at a discounted price of $149. That would undercut the new 7-inch Google Nexus 7 by $50.
For now, the Kindle Fire is available in only one model and once screen size at once price: $199. It debuted with a a strong start, but demand quickly collapsed, as customer satisfaction with Amazon's low-priced device was about half that of Apple's third-generation iPad, according to research from ChangeWave.
Amazon also stepped up competition with Apple earlier this month when the retailer announced its new GameCenter social network for Kindle Fire games. The service, compatible with popular titles like "Temple Run" and "Doodle Jump," is very similar to Apple's own Game Center for iOS.
Comments
Quote:
Originally Posted by AppleInsider
When the new Kindle Fire models debut, the existing model is expected to remain available at a discounted price of $149. That would undercut the new 7-inch Google Nexus 7 by $50.
At first I thought this was a bad idea. A lack of confidence in their product.
Then I realized that Amazon is just going for shelf space... merchandising.
Target will carry most, if not all, of the models (at least at first) that will allow Kindle a larger presence in retail... Combined with the "every price point" PC philosophy.
How about they fix the one they already have, before they add more fail to the market?
If we're talking SKUs, Amazon could add 6 models of Kindle Fire quite easily just with a variation of 3/4G option, color and storage sizes.
They are doing it right, so far. They have one model and they focused the consumer on it. Now they can expand their market. They already have 2 SKUs for the Fire so having a larger model, additional capacities, and/or cellular option sounds like balanced growth to me. Apple has 18 SKUs for their 10" iPad and still hasn't added Sprint to the line up. For comparison, I think MS should learn from Amazon in how to release a tablet that makes sense to the public.
Quote:
Originally Posted by Quadra 610
How about they fix the one they already have, before they add more fail to the market?
Exactly. This on top of other fail coming into the market (e.g., the Google thing).....
I don't get that. The Nexus 7 seems like a great device for $199.
Quote:
Originally Posted by SolipsismX
They are doing it right, so far. They have one model and they focused the consumer on it. Now they can expand their market. They already have 2 SKUs for the Fire so having a larger model, additional capacities, and/or cellular option sounds like balanced growth to me. Apple has 18 SKUs for their 10" iPad and still hasn't added Sprint to the line up. For comparison, I think MS should learn from Amazon in how to release a tablet that makes sense to the public.
WRONG !!
They released a model that was "half-finished" in terms of software, resulting in poor consumer experience. What most people don't realize is that (other than books and e-books) Amazon has almost no presence outside the U.S. and U.K.
Quote:
Originally Posted by SolipsismX
I don't get that. The Nexus 7 seems like a great device for $199.
I saw an article today saying that due to overwhelming demand, it is now out of stock and that production is being expanded.
If they make something capable of running Jelly Bean with more features than the Nexus 7 some people will buy it just for that reason. Even if they have to root the system. A fully functional tablet with at least an equal screen resolution to the Nexux 7; more memory, or a card reader would create lots of sales.
There are wireless storage devices out there now that can expand any tablets capacity by 64 GBs. They are the size of smart phones. Getting one of these is cheaper than the price difference between the $499 iPad and the $699 iPad. People can buy the low end model to see if they like the tablet concept. If they do then they can buy a lot of external storage for it. The next time they upgrade they'll know ahead of time to buy the large capacity model or save that money and keep using the wireless external storage device.
Quote:
Originally Posted by anantksundaram
Exactly. This on top of other fail coming into the market (e.g., the Google thing).....
You mean the one Google can barely keep in stock? The 7in tablet market is for real. Just because it's not an Apple strategy doesn't mean it's a 'fail'.
I have no interest in Fire or any new ones for that matter, but if Amazon intends to expand the Fire family, good for them? Obviously if it was so expensive, detrimental or as you say, a fail, to their business they wouldn't be doing it.
Fünf oder sechs Modelle. Wirklich. Muss ein von wievielen wählen? Mein Selbst benötige ich nur ein. Apple iPad.
Quote:
Originally Posted by SolipsismX
I don't get that. The Nexus 7 seems like a great device for $199.
I'd like to wait and see what happens over the next year. If past experience is anything to go by -- people said similar things about Google's Nexus phone, and a whole heck of a lot of 'iPad killers' -- I am skeptical. With no app store to speak of, no movies in their store, no music in their store, no ability to view in landscape mode (99% of my iPad use is in that mode), etc., it sounds a bit hobbled coming out of the gate. Moreover, the fact that they make zero profit on it (something they've acknowledged) tells me that it cannot be sustained. Their margins will get killed if the product is super-successful.
All Android tablets thus far have been a disaster. If/when something succeeds, I'll reconsider my view. (Given that there's some initial buzz, at this unsustainable price, we should not be surprised if it's sold out).
Quote:
Originally Posted by H2P
At first I thought this was a bad idea. A lack of confidence in their product.
Then I realized that Amazon is just going for shelf space... merchandising.
Target will carry most, if not all, of the models (at least at first) that will allow Kindle a larger presence in retail... Combined with the "every price point" PC philosophy.
Let's see if I've got this right...
Amazon will offer more models/SKUs at various attractive price points
This will cause Stick and Stucco stores like Target, BestBuy, etc. to allocate more/better shelf space
This will increase store traffic
While at the store, the shopper will check out other products of interest
Then, the shopper will "Showroom" the products he likes
--- and buy them for less money at the Amazon web site
What Stick and Stucco store wouldn't kill to do this kind of merchandising?
Quote:
Originally Posted by JerrySwitched26
I saw an article today saying that due to overwhelming demand, it is now out of stock and that production is being expanded.
I saw an article today that said that selling at a low price increases demand. Figure that!
Quote:
Originally Posted by thataveragejoe
You mean the one Google can barely keep in stock? The 7in tablet market is for real. Just because it's not an Apple strategy doesn't mean it's a 'fail'.
I have no interest in Fire or any new ones for that matter, but if Amazon intends to expand the Fire family, good for them? Obviously if it was so expensive, detrimental or as you say, a fail, to their business they wouldn't be doing it.
See above.
Yea i think it's on the way. B&N just released a backlit eInk Nook.
Wasn't it Target that announced they were dropping all Kindle products because they were tired of being used as Amazons showroom
But what does that really mean numbers wise? Out of Stock is a different game when the in stock was only like 10 units at a time, compared to say 10k or 10mil. The HP Slate sold out in like 3 days of preorders which sounded great until it was revealed that they had only had like 2k models for sale
How many sales are channel v end user?
And how many returns have there been on the Nexus. Cause saying something like 100k sold means less if that's to the channel but only 1k of that has sold to users. Or that 100k sales to users have had 50k returns.
Google could be pulling a Samsung and saying they are sold out but it's just channel sales and might not be a major number at that
"Barely able to keep in stock" could either mean high demand or low production. Since Google doesn't announce sales, you have no way of knowing which.
In the end, it will be much like the Kindle Fire. Lots of initial sales from people who think the iPad is too expensive - followed by lots of disappointed customers. Read the reviews. The essence of most of them seems to be "it's UI is worse than the iPad, the software selection is worse than the iPad, the screen is worse than the iPad, and the build quality is worse than the iPad, but it's only $199, so who cares?" Of the dozen or so reviews I've read, none of them says it's a great product - just an acceptable product.
If Apple releases a 7" iPad, even at $299, it will destroy Nexus 7" tablet sales.