Amazon's (AMZN) New Tablet Expected to Debut at Rock-Bottom Prices
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Amazon (Nasdaq: AMZN) shares are making a strong move into positive territory Wednesday morning following details related to the upcoming launch of its next-generation Kindle.
Supposedly named the Kindle "Fire," sources speculated the tablet would price somewhere near $250, about half the entry level of Apple's (Nasdaq: AAPL) iPad. But it's not going to price at $250.
And it's not gonna price at $225.
No, future tablet owners, Amazon is looking to light Fire to tablet sales with the low, low price of $199. That's 20 percent below prior expectations, and 60 percent less expensive than the base iPad at $499.
Specs on the new device look very interesting too. The Fire will have a 7-inch display, Google (Nasdaq: GOOG) Android 2.2, Wi-Fi comparability, and a dual-core Texas Instruments (NYSE: TXN) processor.
Buyers will also gain access to Amazon Prime for a 30-day trial, Bloomberg reports. Amazon Prime normally requires a commitment of $79 per year, but it offers users many streaming media choices similar to that of what Netflix (Nasdaq: NFLX) offers, though the library isn't as extensive.
Fire's interface is expected to be easier to use and tied closely to Amazon's growing content of books, TV shows, and movies.
Amazon is hoping it's partnerships with publishers and other media outlets will allow better pricing on more content, something rivals Hewlett-Packard (NYSE: HPQ) and Research In Motion (Nasdaq: RIMM) failed to hone in on.
Debuting the Fire now might be a great move for Amazon: Apple doesn't have a date set for its next generation iPad and RIM and H-P have all but lost their client base for tablets. Analysts have slashed shipment expectations for RIM's PlayBook, while H-P has stopped production on it's TouchPad tablet. Likely competitor Microsoft (Nasdaq: MSFT) isn't expected to produce it's Windows 8 tablet until some time in 2012.
With a great price, simple interface, and Amazon's name backing it, the Kindle Fire could pose to change the tablet game.
Amazon shares are up 2.8 percent Wednesday morning.
Supposedly named the Kindle "Fire," sources speculated the tablet would price somewhere near $250, about half the entry level of Apple's (Nasdaq: AAPL) iPad. But it's not going to price at $250.
And it's not gonna price at $225.
No, future tablet owners, Amazon is looking to light Fire to tablet sales with the low, low price of $199. That's 20 percent below prior expectations, and 60 percent less expensive than the base iPad at $499.
Specs on the new device look very interesting too. The Fire will have a 7-inch display, Google (Nasdaq: GOOG) Android 2.2, Wi-Fi comparability, and a dual-core Texas Instruments (NYSE: TXN) processor.
Buyers will also gain access to Amazon Prime for a 30-day trial, Bloomberg reports. Amazon Prime normally requires a commitment of $79 per year, but it offers users many streaming media choices similar to that of what Netflix (Nasdaq: NFLX) offers, though the library isn't as extensive.
Fire's interface is expected to be easier to use and tied closely to Amazon's growing content of books, TV shows, and movies.
Amazon is hoping it's partnerships with publishers and other media outlets will allow better pricing on more content, something rivals Hewlett-Packard (NYSE: HPQ) and Research In Motion (Nasdaq: RIMM) failed to hone in on.
Debuting the Fire now might be a great move for Amazon: Apple doesn't have a date set for its next generation iPad and RIM and H-P have all but lost their client base for tablets. Analysts have slashed shipment expectations for RIM's PlayBook, while H-P has stopped production on it's TouchPad tablet. Likely competitor Microsoft (Nasdaq: MSFT) isn't expected to produce it's Windows 8 tablet until some time in 2012.
With a great price, simple interface, and Amazon's name backing it, the Kindle Fire could pose to change the tablet game.
Amazon shares are up 2.8 percent Wednesday morning.
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