Now that Amazon has launched the Kindle Fire, we have some interesting news about the rumored Amazon Kindle 2, the 10.1 inch premium version of the Kindle Fire which will compete with the iPad.
Production of the Amazon Kindle Fire was outsourced to Quanta, the same company which manufactured RIM’s Blackberry Playbook (which also explains the uncanny similarities in the designs of the two tablets).
Apparently, for the 10.1 inch Kindle Fire 2, Amazon is going with Foxconn Electronics, which also creates Apple’s iPads. According to a report by Digitimes, the Kindle Fire 2 will be available for shipping before the end of 2011, just before the holiday season.
While Amazon is taking a $10 loss on each Kindle Fire that it sells, it will likely be able to sell the Kindle Fire 2 at a profit, by positioning it as a premium product. It is expected to have much better specifications than the Kindle Fire, which is lacking in several departments when it comes to hardware.
Sources say that one of the reasons why Amazon launched the 7 inch tablet first is because of supply constraints related to 10 inch displays.