Does a larger Amazon Kindle Fire make sense?

Even though there is a lot of hype about the iPad 3, one thing cannot be ignored and that is how the Amazon Kindle Fire heated things up in the tablet market when it launched. A less expensive tablet at 200 bucks features a smaller 7 inch device with lower end specs and yet grabbed lots of attention based on how amazon wrapped it up in its Cloud, Music, Video, and Book services. The Kindle Fire was not only just about books, but had web browsing as well as game play with titles like Angry birds. The stars aligned and the Kindle Fire was a success to consumers looking for an alternative to the iPad and it’s pricey 500 dollar or more price tag. It is also said a few people out there don’t like the Apple eco system but there is not questioning the apps available for the iPad are impressive. Some even suggested that it would be more practical to consider the original iPad that still spec’d out better than the Kindle Fire and offered the same apps.

The Amazon Kindle Fire would not be denied and the sales proved it. Estimated to  have sold 4-6 million units, Amazon would be laughing all the way to the bank had it not been for the poor profit margin of the Kindle Fire at $200. Amazon knew this and while some say they lost money, it was the loss leader they needed to surge revenue in their Cloud services. So much so Forbes is saying that Amazon revenue has risen 40% to 18.3 billion. So with positive sales on the Kindle Fire, but lac luster profit, could a 9 inch Kindle Fire for more of  a premium be the solution?

As ChinaTimes is reporting, Amazon indeed seems set to launch another version of the Kindle Fire perhaps to be called the Kindle Fire 2. Rumors are saying that an announcement could come in May and perhaps signal a May/June launch of the device. The Kindle Fire 2 will have reduced production costs based on the high volume results of the original Kindle Fire. Hardware and Specs have not been released for the Fire 2 nor has there been any leaks, but it stands to reason that amazon must control costs in the follow up Kindle Fire 2 and try desperately to make some profit on the hardware to get the Wall Street Hell Hounds off it’s heels.

So does the Amazon Kindle Fire 2 in it’s new larger size make sense when it jumps into the arena squarely with the 9.7 inch iPad 3? Granted the iPad 3 will dominate the Kindle Fire 2 in the specs arena but users of the Amazon Cloud services should be well pleased with a lower priced alternative to the iPad. And we expect the Kindle 2 to perform as the original 7 inch tablet does in that there is nothing fancy, but it just works for moderate web browsing, media content, books, and gaming. With Amazon Cloud and Media Services, the larger Kindle Fire 2 should see equally as impressive sales number as it’s 7 inch predecessor,  and provide some much needed competition for the iPad 3 and Apples stranglehold on the tablet market.

(source: PhoneArena)