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Kindle Fire HD Lineup Will Not Reduce the 7-Inch to $99

Kindle Fire HD Lineup Will Not Reduce the 7-Inch to $99

Amazon denies rumors that they will cut the price of the  7-Inch Kindle Fire HD model to $99, but does not refute the possibility of a new $99 model.

In order to expand their customer base in the US and abroad, Amazon has already reduced the prices of their popular 8.9-inch Kindle Fire HD tablets earlier this month. The WiFi version for the 8.9-inch has dropped to $269 while the LTE version is now down to $399. While these prices are fairly competitive in the American market, the Kindle Fire has been losing ground to many of the low-cost Android tablets priced as low as $79. After Amazon lowered their prices on their current tablets, rumors have spread that Amazon is going to release a new 7-inch Kindle Fire HD for $99 at some point this year. Amazon, however, has stated that “It’s not happening…”

Kindle Fire HD

Currently the price point for the 7-inch Kindle Fire HD is $199, a drop of $100 would definitely help Amazon attract many more customers and undercut the price of Apple’s iPad mini even further. The potential price drop seems quite steep and would seem like Amazon would be selling the $99 Kindle Fire HD at a loss. Jeff Bezos explains that Amazon breaks even on all of their hardware, so a lowered price would lead to a net loss for the company. On the other hand, IDC Research Director on tablets, Tom Mainelli believes that Amazon could potentially break even with these prices. Mainelli explains that “If they can sell the product at roughly what it costs to build, that fits their long-term vision to make money selling you content on that device. It’s entirely possible ” physically possible ” to create a device that costs $99, particularly at the scale that Amazon would do it.”

While Amazon denies the fact that they are dropping the price of the current 7-inch Kindle Fire HD, they did not make any mention that they will not produce a new 7-inch model. Amazon states that they are “…already at the lowest price points possible for that hardware.” The statement specifically references the 7-inch model, however makes no mention of the possibility of future products. A Kindle Fire HD in the $99 range would certainly attract a larger customer base despite the fact that the specs would not be as beefy as the current models.

[email protected] | @nardionet

Jasmine Greene
Writer at and also at | Google Plus

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