Rumors are abound that Amazon is working on bringing to market a 7-inch Kindle Fire HD tablet with a price tag of only $99. This would be the beginning of the end for the competition.(Source: Amazon)
Currently the 7-inch Kindle Fire HD costs $199, so the price drop would be a very significant one, taking it below the price point of $159 that Amazon currently asks for the older Kindle Fire tablet. Earlier this month Amazon slashed the price of its 8.9-inch Kindle Fire, taking the Wi-Fi version down from $299 to $269, and the LTE version from $499 to $399.
Amazon is in a unique position to be able to bring cheap yet high-quality tablets to market because it is not reliant on the hardware itself to turn a profit. The Kindle family of devices are a way of making existing Amazon customers buy more stuff.
According to an IHS iSuppli virtual teardown, the current 16GB 7-inch Kindle Fire HD is estimated to cost Amazon $174 to make, and this was based on November 2012 component costs. Most components have fallen in price during this time, so this will undoubtedly help bring the cost down.
Read also:
Amazon Kindle Fire not coming in $ 99 version (Android Community)
Amazon to offer $ 99 Kindle Fire HD [RUMOR][UPDATE] (Phandroid.com)
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