Amazon launched the Kindle Fire to enter the booming tablet space in late 2011. The Kindle Fire has been a huge hit, selling millions of units, and is probably the most popular tablet after the Apple iPad.
According to a new report by a Taiwanese daily, Amazon may be planning to launch three new variants of the Kindle Fire in 2012. With the three new Kindle Fire models, it will target different segments of the market.
1. 7 inch Kindle Fire (1024 x 600 pixels)
2. 7 inch Kindle Fire (1280 x 800 pixels)
3. 8.9 inch Kindle Fire (1920 x 1200 pixels)
All three variants will likely have different hardware configurations as well. The low end 7 inch model will likely be priced at $199 and compete with cheap Android tablets, while the high end 8.9 inch one will compete with the iPad and premium Android tablets. All three variants will be assembled by Taiwanese manufacturers like Quanta.
Amazon will have to roll out a better budget tablet soon, if it wants to compete with the rumored Google Nexus tablet, which will supposedly be priced in the same range. It will likely price all these tablets as low as it can, and just barely break even, while making money by selling content on the tablets, like it always has.