Amazon cuts price of largest Kindle Fire tablet
The Kindle Fire HD 8.9 inch Wi-Fi tablet will now be priced at $269 in the United States, down from $299. The 4G wireless version now starts at $399, compared with $499 before, Amazon said.
Amazon is launching its larger tablet in the UK, Germany, France, Italy, Spain and Japan. Dave Limp, president of Amazon's Kindle business, said the company has increased production of the devices in conjunction with the overseas launch. The cost of making the tablets has fallen with greater economies of scale, letting Amazon cut prices, he said.
"Whenever we are able to create cost efficiencies like this, we want to pass the savings along to our customers," Limp said in a statement.
Amazon launched its first Kindle Fire tablet in 2011 to compete with Apple Inc's dominant iPad and other tablets from companies such as Samsung that run on Google Inc's Android operating system.
Amazon sells its devices at cost, undercutting Apple prices. Amazon aims to make money when customers use its tablets to buy physical and digital products from the company, such as movies, music, games and apps.
However, Amazon's strategy rests on selling a lot of tablets. This may not be working well yet for its larger 8.9 inch Kindle Fires, according to recent research by Chad Bartley, an analyst at
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