Report: New Amazon Kindle Fire Will Drop Price of Current Model to $149

Report: New Amazon Kindle Fire Will Drop Price of Current Model to $149

According to a new report, Amazon will release a new 7-inch Kindle with a higher resolution screen at the start of the third quarter this year. It will sell for $199, pushing the current model’s price down to $149.


Citing sources in the upstream supply chain, DigiTimes reported on Friday that Amazon is “considering launching” a new lineup of Kindle e-book readers and tablets at the start of the third quarter of calendar 2012. Among those products is said to be a new 7-inch Kindle Fire with a screen resolution of 1,280 by 800 pixels, priced at $199.

Amazon could then sell another 7-inch model, with specifications similar to the current Fire, at a $149 price level. The less expensive Kindle Fire could help Amazon expand its market share.

Previously, it was reported that Amazon was working on larger models of the Fire, with screen sizes of 8.9 inches and 10.1 inches, and they were expected to launch earlier this year. Friday’s report indicates that those plans have changed, saying that Amazon has halted development of the 8.9 inch model. The 10.1 inch model is expected for fourth quarter 2012, or first quarter 2013.

Debuting late last year, the Kindle Fire got off to a strong start, and quickly ensconced itself as the No. 2 most popular selling tablet, behind only Apple’s market leading iPad. Demand for the device quickly plunged though, as consumer satisfaction with the bargain priced device suffered.

Reports also say Amazon has plans to release a new 6 inch e-ink based Kindle reader with an integrated backlight in the third quarter of 2012 at the earliest.

As usual, let’s take this report with a grain of salt, as it does originate with DigiTimes, who has a spotty track record on reports such as these.