Never scared to undercut the competition, Amazon has lowered the price of the Kindle Fire HD.
Amazon has just slashed the price of its flagship tablet down to $169, down from $199, for a 16 GB model. The 32 GB model got a similar reduction and now costs $199. The Kindle Fire HD is currently Amazon’s top selling product in the electronics category, and the price reduction will inevitably reinforce that title.
There’s a number of reasons Amazon decided to start cutting prices now as their market share slipped a bit to the ever present iPad as well as some Windows Tablets.
A third-generation Kindle Fire model should be out in just two months so the price drop on the current model is elementary. In March, Amazon also permanently cut the price of the 8.9-inch Kindle Fire HD model, bringing the entry-level price down to just $269. It’s also worth mentioning the back to school season is right around the corner already so Amazon could be trying to attract the attention of value conscious parents.
Amazon’s tablet unit sales have historically been highly seasonal right now it’s the dog days of summer. Amazon has yet to release hard numbers on tablets sales, but industry analysts estimate that Amazon shipped 1.8 million tablets in the first quarter, a 70% sequential drop relative to the 6 million units it shipped during the holiday quarter.
Either way, as Amazon has such a vast array of products and economies of scale it can may than easily afford to take a slight price cut on the Kindle Fire paving the way for its next gen release.