Amazon's (AMZN) Next Generation Kindle Fire Slated for Q212 Production

December 20, 2011 9:13 AM EST
It's only been about one month since Amazon's (Nasdaq: AMZN) Kindle Fire hit the hands of the consumers, largely to mixed reviews, but overall good enough to set sales ablaze.

But, as any good company does, Amazon is already planning for production of its next-generation Fire. According to Digitimes Tuesday, sources said the production of the next Fire will begin in the second-quarter of 2012.

The next Fire is expected to have an 8.9-inch display. Sources also said that Amazon might add NVIDIA (Nasdaq: NVDA) processors to its lineup, in addition to the Texas Instruments (NYSE: TXN) chips already being used. Amazon might also expand its sourcing for controller integrated circuits (ICs) to Atmel (Nasdaq: ATML) or Cypress (NYSE: CY), Digitimes notes.

Foxconn Electronics, a noted OEM parter with Apple (Nasdaq: AAPL), might also be added to Fire production. The current maker of the Fire, Quanta Computer, is said to be ramping-up production from 3.5 million to 4.0 million units by the end of calendar 2011, to a range of 4.7 million to 5.3 million units.

IHS (NYSE: IHS) iSuppli predicts that production of tablet PCs will increase to 28.3 million in the fourth-quarter, with Apple accounting for 66 percent and Amazon's Fire about 14 percent. The numbers translate to about 18.7 million for Apple and nearly 4 million for Amazon.

Both Apple and Amazon are positive ahead of the bell Tuesday.


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