How much are you willing to spend on an Amazon tablet? A rumor that has been floating around recently suggests that the company will soon be releasing a 7-Inch Kindle Fire HD for only $99. This price point will make it compete effectively against the onslaught of cheap Android tablets coming from China while offering premium features and support.
The upcoming budget friendly device is said to use a TI processor like most of the recent Kindle devices. It’s also going to have a display resolution of 1280×800 which is the same as the current Kindle Fire HD.
This rumor comes at a time after the company has reduced a price drop on its Kindle Fire HD 8.9″ devices. The Wi-Fi only version of the device which used to be priced at $299 now costs only $269. The LTE version which used to cost $499 is now priced at $399. According to experts who have data on tablet trends the 8.9 inch model isn’t popular among consumers while the 7 inch model is.
It’s very much possible that amazon will be releasing a $99 tablet this year according to experts. According to Tom Mainelli, IDC Research Director on tablets, “The infrastructure is definitely in place for Amazon to go even lower. 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.”
Amazon, through its representative, was however quick to comment on this rumor saying that “We are already at the lowest price points possible for that hardware.”
This may be the case now but with the cost of manufacturing the said device goes down then what follows is the retail price that’s going to go down.