When the Amazon Kindle Fire rumors first popped up in 2011, the word was that the company would release an initial model in Q4 2011 and an improved model in early 2012. The latest rumor is that the successor the Kindle Fire is coming in Q2 2012. Possibilities include a larger model, cheaper materials, and a big shift in how Amazon makes money with the Kindle Fire. Check it out.
According to Ubergizmo:
According to reports online, Amazon is working on the follow up to the Kindle Fire and could possibly be launching it in May. The company is said to be reducing production costs for the tablet in order to sell the tablet and make a profit out of it. At the moment, Amazon is said to be making money from the sales of content to Kindle Fire owners as opposed to making money from the tablet itself. By making the tablet profitable to Amazon, it is a pretty big shift in direction for the company.
However, the Kindle Fire 2 is rumored to contain lower-priced materials -- but whether or not this means a lower-spec’d tablet is yet to be known (though it’s highly unlikely).
To clarify, Amazon currently uses a razor-and-blade model with the Kindle Fire. Depending on which supply-chain source you believe, it either makes no money or very little money on the hardware. The product is a longterm investment that generates revenue from media sales (apps, music, movies, etc.) and -- rather uniquely -- sales of non-related products through Amazon Prime.
The mistake with the latest rumor is to think that the Fire successor will just be a cheapie tablet. Depending on supply-chain manipulation and which parts Amazon has previously paid for, the next Kindle Android tablet could have quality parts and generate profit for the company. The manufacturing process could be streamlined and Amazon could have a sweetheart deal on components.
What do you think of latest Amazon Kindle Fire rumors? Are you interested in a Kindle Fire that's 10 inches or larger?
[Via: Ubergizmo]
