Amazon recently launched the Kindle Fire, and by all measures, it has been a huge hit. It’s priced at just under $200, making it one of the cheapest tablets around. It is expected to sell nearly 4-5 million units in Q4 2011.
It may not be as good as the iPad, but it offers plenty of value to budget consumers who want a cheap tablet to read ebooks, watch videos, browse the web and maybe play with a few apps.
According to a report by Digitimes, Amazon is already working on the Kindle Fire 2. Rumors suggest that Amazon is developing 8.9 inch and 10.1 inch Kindle Fire models, and will be launching the 8.9 inch model first.
We don’t have any details about the exact specifications of either model, but they will presumably have slightly better specifications than the Kindle Fire, and Amazon will probably try to iron out all the bugs and issues with the first Kindle Fire before launching them.
Foxconn will also be manufacturing the future versions of the device, along with Quanta, the exclusive ODM for the Kindle Fire.
Maybe Apple should rethink its plans and create a cheaper iPad Mini, if it hasn’t already. With the operational expertise of Tim Cook and their hefty margins, it’s probably the only company that can bring a better device at a price of around $300. But then, they aren’t as willing as Amazon to sacrifice their margins. And they don’t need to.