The tablet wars are heating up, and Amazon.com's
First-generation Kindle Fire. Source: Amazon.com.
In its stead, Amazon is reportedly looking to release a new 7-inch tablet with a higher-resolution screen of 1280 x 800 to occupy the $199 price point. The company plans on keeping a lower-resolution model at the $149 entry-level price. On top of that, Amazon was also looking at 8.9-inch and 10.1-inch models, which would compete more directly with the iPad on features and pricing.
According to the dubious news outlet's sources, the 8.9-inch model has gotten axed and Amazon is now focusing its efforts on the 10.1-incher, targeting a fourth-quarter 2012 or first-quarter 2013 launch.
On the traditional e-reader front, the site believes Amazon is working on a 6-inch backlit model, which would be a response to Barnes & Noble's
Digitimes is about as shady as Far East supply chain leaks get, but this report actually makes a lot of sense. Amazon hit the ground running in the tablet market, and if it chooses to follow the standard annual refresh cadence, we're T-minus three months to the Kindle Fire's first birthday, so maybe some siblings are in order.
Just in time to crash the party
While the Kindle Fire remains among the best-selling Android tablets to date, Google is expected to unveil a new Nexus Tablet later this month, possibly at its Google I/O developer conference. That tablet is thought to see a price point between $150 and $200, squarely in Kindle Fire turf. Although that creates a tough proposition for third-party OEM partners that are looking to actually, you know, turn a profit on the hardware.
As we all know by now, Amazon sells the Kindle Fire at or above cost, relying on content sales down the road to pitch in to the bottom line, as all of the preloaded services point straight to Amazon's own content offerings instead of Big G's. Amazon even has its own Android Appstore to compete with Google Play.
Who's coming with me?
As far as ways to play the second generation of Kindle Fires, NVIDIA
I'd also expect the new tablets to feature a more distinct form factor, as opposed to the relatively generic-looking current Kindle Fire that looks almost identical to Research In Motion's PlayBook, since both devices are made by the same contract manufacturer, Quanta. The first time around, Amazon outsourced design to get a device out the door in time for last year's holidays, but this year it's had more time, so it will probably revamp the design.
Besides, I doubt anyone wants to be associated with the PlayBook any more than necessary.
There's no "if" about it
Despite the questionable origin of the speculation, this rumor checks out. It's pretty obvious that Amazon will inevitably update and expand its Kindle Fire lineup. It's only a matter of when and by how much.
Amazon is one of three stocks that will help you retire rich, thanks to its disruptive ways. Grab a copy of this special free report to find out why, along with two other names that will help you get to one of your most important financial goals. You don't want to retire poor, do you?
Fool contributor Evan Niu owns shares of Apple and Amazon.com, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Amazon.com, Apple, and Google. Motley Fool newsletter services have recommended buying shares of Google, Apple, NVIDIA, and Amazon.com, creating a bull call spread position in Apple, and writing puts on Barnes & Noble and NVIDIA. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.