Fiery Updates on the Kindle Fire
The Kindle Fire, Amazon’s latest and greatest addition to its Kindle line, was announced on September 28. Many comparisons are being made between Amazon’s Kindle Fire and Apple’s iPad, and it doesn’t take an online PhD to anticipate that the devices will compete for consumer dollars this holiday season. With such fierce competition set to cause a ruckus, here’s a collection of recent developments pertaining to the Kindle Fire.
Get ‘Em While They’re Hot
It seems as if the Kindle Fire, with its attractive $199 price tag (more on that later) and Amazon-backed branding, is being well-received by consumers. According to market research firm eDataSource, “an estimated 95,000 preorders came in for the Kindle Fire on the first day.” Furthermore, “an additional 20,000 have been sold daily to reach a total of 215,000.” eDataSource includes a disclaimer which states Amazon doesn’t release official sales numbers. With that said, earlier iterations of the Kindle have been well received by consumers, so analysts are optimistic about customer reception to this newer model.
Razor-Thin Margins
One of the biggest fads in the tech world remains the teardown process of new devices. Not only do teardowns provide insight into the engineering that goes behind a product’s development, it also gives consumers a look at what their hard-earned dollars are going toward.
A teardown of the Kindle Fire revealed that its manufacturing costs were actually higher than its $199 price tag. The physical materials used in a Fire cost $191.65, while manufacturing costs added $17.98, bringing its total cost to $209.63. Although each Fire is sold at a loss, Amazon is hoping that its sub-$200 price point will entice consumers to steer away from their obsession over Apple’s iPad. Furthermore, Amazon is also expecting to use the Fire to scale its expansive collection of e-books, mp3s, and videos.
Drama Ensues
In the patent industry, any impending threat is usually met swiftly and forcefully. In relation to the Kindle Fire, Microsoft recently signed a patent licensing deal with Fire manufacturer Quanta. Although no official details were released, reports state Microsoft will receive royalties from Quanta for each Fire manufactured. This deal is still in development stages, so it’s unsure whether Amazon will be freed from patent obligations with Microsoft. Stay tuned for further developments in this story.
For a device that’s yet to be released, the Kindle Fire is already garnering abundant attention. Regardless of how well it will fare against the iPad, the Fire is sure to cause a scene in the tablet market.
Kindle Fire, Full Color 7" Multi-touch Display, Wi-Fi
- $199.00 List Price
- $199.00 at Amazon.com
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I've been thinking about a Kindle Fire. Perhaps Santa will get me one for Christmas. I don't even have a tablet right now, only an Android smart phone. I feel so old school.
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