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According to a number of sources, Amazon may be releasing an 8.9-inch tablet next year. This model of Kindle Fire will be produced to avoid competition with larger tablets. The news come from supply chain makers for Amazon who say that the device may hit the markets in the second quarter of 2012.

According to the reports, the 8.9 inch model of Kindle Fire will be manufactured by Foxconn. The first model of Kindle Fire was manufactured by Quanta. Analysts say that Amazon wanted Foxconn to build the first model too but Foxconn was already booked with Apple iPad 2 orders and so declined the offer. Seems like for the next model, Amazon has successfully broke a deal with the ODM.

Competing with the 8.9-inch tablet market:
Kindle Fire was released a week ago and has already gripped the world with it’s stunning looks and sleek design. The price-tag, set at $199, is the most enticing factor in the huge sales Kindle Fire is experiencing. Another factor is that Amazon will be allowing Kindle users to get an unlimited content from its online stores at very lucrative deals. The sources say that Amazon has decided to go with an 8.9-inch model of Kindle Fire the next year because it doesn’t want to compete with large 9.7-inch and 10.1-inch tablets for now. It is also a response to the promotions to the 8.9-inch tablet promoted by LG Display and Samsung Electronics.

Amazon garners its main strength from its vast content repository. This enables it to launch low-cost devices and then make profit mainly through the content. It is also being speculated that Amazon may release a smartphone next year, cashing upon the same strategy.

Image courtesy Courtbean.

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  On November 21, 2011(3 years, 1 month ago.)

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