Taipei, Thursday, September 29, 2016 06:10 (GMT+8)
scattered thunderstorms
Taipei
29°C
Digitimes Research: Amazon changes strategy for 3rd-generation Kindle Fire
Jim Hsiao, DIGITIMES Research, Taipei [Tuesday 8 October 2013]

Amazon recently announced three third-generation Kindle Fire tablets, one 8.9-inch and two 7-inch models. In addition to new hardware, Amazon also updated many of its apps and services, seeking to raise the tablets' overall value through richer content and services. Amazon is no long pushing price drops and is instead maintaining its core market through integrating appropriate hardware specifications with applications.

Amazon's re-designed 7-inch Kindle Fire HD is selling for US$139, targeting the 7-inch entry-level tablet market. Although the tablet has no advantages against other similar-specification or white-box products in terms of hardware, Amazon's services will still allow it to see good demand.

Amazon's 7-inch Kindle Fire HDX, which features a price point and specifications similar to the second-generation Nexus 7, and 8.9-inch Kindle Fire HDX 8.9, targeting to compete against iPad, are both meant to enhance the user experience, and are not for price competition.

Compared to other similar-specification tablets from competitors, Amazon's new Kindle Fire tablets enjoy about US$20-30 additional value. Amazon's decision to halt the production of its previous-generation Kindle Fire instead of offering a price cut is partly due to the possibility that the old tablet does not support the new operating system. The decision also shows that Amazon has not interest in the sub-US$100 tablet market.

Digitimes Research expects Amazon's Mayday service to become a tool that provides simple supporting services to average users in the short term and will expand to become an online customer service in the long term. Amazon has also been addressing complaints such as lack of apps and lack of differentiated digital content.

Compared to its low-price strategy in the past few years, Amazon is no longer competing against other brand vendors directly over hardware, and is instead focusing on improving specifications and strengthening services to differentiate from others and increase its value. Although the new strategy is unlikely to help expand Amazon's user base in the short term, customer satisfaction is expected to bring long-term benefits to the brand vendor.

Realtime news
  • Digitimes Research: Global average LTE-based data transfer speed rises unnoticeable

    Mobile + telecom | 6h 43min ago

  • China market: Xiaomi launches Mi 5s, Mi 5s Plus, Mi TV 3s

    Mobile + telecom | 7h 6min ago

  • Sharp buys back office building in Japan

    Before Going to Press | 8h 32min ago

  • Telecommunications and automotive players form global cross-industry 5G Automotive Association

    Before Going to Press | 9h 11min ago

  • NXP establishing security standards for smart cars in China with cross-sector collaborations

    Before Going to Press | 10h 10min ago

  • DRAM spot prices hit 7-month high, says DRAMeXchange

    Before Going to Press | 10h 11min ago

  • Analog IC firm Leadtrend grows shipments for mobile devices

    Before Going to Press | 10h 12min ago

  • Kingston affiliate buys 70% of Innostor

    Before Going to Press | 10h 12min ago

  • TS Solartech to lay off 200 employees

    Before Going to Press | 10h 56min ago

  • Lenovo to downsize personnel by 2%

    Before Going to Press | 10h 56min ago

  • IC design house ITE Tech looks to 12-15% sequential growth in 3Q16 revenues

    Before Going to Press | 10h 57min ago

  • Taiwan ranks 14th in WEF 2016 GCI

    Before Going to Press | 10h 57min ago

  • China market: Xiaomi launches Mi 5s, Mi 5s Plus, Mi TV 3s

    Before Going to Press | 10h 59min ago

  • 53 million Ultra HD TVs to be globally shipped in 2016, says WitsView

    Before Going to Press | 11h ago

  • Wistron NeWeb to post strong sales in 3Q16

    Before Going to Press | 11h 1min ago

Pause
 | 
View more
UMC
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.