5" Kindle Fire Mini for $99 in 12 months time? (direct rival to Ipod Touch)

BookReader2

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Sep 3, 2012
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The Kindle Fire 2 (with its upgrades) is retailed at $159. (Used to be $199 for the Kindle Fire 1).

So we know that bill of materials are dropping each passing week. In 12 months time, a 5" Kindle Fire Mini for $99 might be possible for the 2013 winter shopping season. Especially if Amazon is willing to sell these "at cost."

Think of it as a "gateway" tablets targeting mainly kids, tweens and teens. It's easier to carry around than a 7" tablet and doesn't require a contract that a large screen smartphones like Galaxy S3, Galaxy Note, LG Optimus Intuition require. There might be a market for it.


It would be a direct challenger to the Ipod Touch. Ipod Sales are decreasing each year thank to smartphone penetration. But it's still a huge market out there. Apple sold some 45 millions Ipods in 2011.

10Quarters-iPod.jpg




Parents/relatives who want an inexpensive device for their kids to carry around (in the pockets if possible) got three options:

1. Ipod Touch 3.5" (at $199)
2. Kindle Fire 5" (at $99)
3. Kindle Fire 7" (at $159) ----might be hard to carry around in pockets

Which will sell best?
 
Time to steal some market share away from Apple?

Apple announces fifth-generation iPod touch: 4-inch screen, 6.1mm thick, Siri included, starts at $299 -- Engadget

The iPod touch will be available in two flavors: a 32GB model ($299) and a 64GB number ($399). It will be sold in five colors: "raw aluminum," black, blue, yellow and red, and a (PRODUCT) RED version will also be available. Three hundred bucks too pricey for your next PMP? The last-generation touch will remain on the market, with the 16GB one going for $199 and the 32GB version selling for $249.
 
In 12 months time, many parents will probably be ready to pass on their 4.3 to 4.8 inch phone to their kids. My kid is already using my old gnex loaded with games...although he still prefers his ipod touch.

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Amazon is going to announce 3 new Kindle Fires in a few weeks, two clearly will be the Fire HD 7 and 8.9, but the 3rd could be a mini tablet instead of just another Kindle Fire basic.