According to Pacific Crest analyst Chad Bartley, Amazon is working on an updated version of its 7-inch Kindle Fire, along with new 9-inch version of the Kindle Fire. The new tablets are expected to launch sometime during the middle of the year. Because of the upcoming tablets, Mr. Bartley raised his full-year Kindle Fire shipment forecast to 14.9 million units (prior estimate was at 12.7 million).
When we first heard about Amazon launching an Android tablet, rumors did hint at multiple models, specifically a small 7-inch model, and a larger 10-inch model. When announcement time came, Amazon only launched the smaller 7-inch Kindle Fire for $199.
If Amazon does indeed launch newer tablets this summer, it will be interesting to see if they continue to price them low. With every sale of the Kindle Fire, Amazon is losing some money. They’re betting that people who purchase the Kindle Fire will end up buying more content such as movies, books, and music from Amazon’s services.
If Amazon can somehow lower the price of the new 7-inch Kindle Fire (or keep it the same while adding additional features such as camera, GPS), and introduce the 9-inch Kindle Fire at a low price (somewhere in the $250-$300 range), then I think they will have another winner.