One issue with the current Kindle Fire, otherwise a great product at the price it is offered ( $199) is its relatively smaller size. The smaller size makes lesser readable area available, making you scroll more often that you would like to. This is where Apple’s iPad makes a better choice.
When iPad 2 was at $499, Kindle fire still made a lot of sense at $199 – for one iPad 2, you could buy two of them and still be have $100 left. But, when Apple launched iPad 3, and the price of the iPad 2 was reduced to $399, with refurbished models available at $350, Kindle fire made less sense ( when compared to iPad 2).
This is going to change when Amazon launches bigger Kindle fire in the last quarter of 2012 or first quarter fo 2013. With the launch Amazon will be reducing the prices of the existing Kindle fire. Amazon will also launch newer 7 inch model that will have better resolution. The current 7 inch Kindle fire has a resolution of 1280 x 800.
While the price of the 10 inch version is still unknown, but we expect it to be priced no more that $249. If Amazon could manage its price at the level as the current Kindle fire it canrest assured to sell at least 5 million in a quarter. People will just love the larget 10 inch Fire and its price.
Amazon seems to have dropped the idea of an intermediate 8.9 inch Kindle Fire.
When amazon launched its first Kindle Fire before the start of the holiday season in 2011, it sold 4.7 millions of it in Q4, 2011 or about a third of the Apple’s iPad.
In April 2012, it was reported that Amazon’s revenue increased 34 percent to $13.18 billion in Q1 2012 with the Kindle Fire nabbing half of the Android tablet market. If Amazon can manage to get the 10 incher Kindle fire under $225, it can manage to sell between 7 million to 10 million in just one quarter.