Amazon’s Kindle Fire 2 Coming This July?

by Trefis Team
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Amazon (NASDAQ:AMZN) may be planning to launch the next variant of the Kindle Fire — the Kindle Fire 2 — as early as next month. It will reportedly launch the Kindle Fire 2 on July 31, well before the holiday shopping season this year. The new Amazon Kindle Fire 2 will supposedly be priced lower than even the $199 Kindle Fire, on which Amazon barely broke even. It will be powered by better hardware and come with a larger display. It will compete primarily with Google‘s (NASDAQ:GOOG) rumored Nexus tablet which is expected to be in the same price range, as well as Apple‘s (NASDAQ:AAPL) iPad and Microsoft‘s (NASDAQ:MSFT) Windows 8 tablets. [1]

Check out our complete analysis of Amazon

Kindle Fire: Good for the top line, bad for the bottom line

Given the low price point, we expect Amazon’s hardware revenues to jump following the launch of the Kindle Fire 2, but it could very well push Amazon’s profits in the negative zone.

The Kindle hardware accounts for only 3.3% of Amazon’s total value because of razor thin margins. However, Amazon expects to generate increasing amounts of revenue by selling digital content to the Kindle users.

We currently have a $222 Trefis price estimate for Amazon, which stands close to its market price.

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Notes:
  1. Kindle Fire 2 may hit as soon as July, CNET []
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