Taipei, Saturday, March 25, 2017 02:06 (GMT+8)
scattered showers
Taipei
16°C
Digitimes Research: Amazon changes strategy for 3rd-generation Kindle Fire
Jim Hsiao, DIGITIMES Research, Taipei [Tuesday 8 October 2013]

Amazon recently announced three third-generation Kindle Fire tablets, one 8.9-inch and two 7-inch models. In addition to new hardware, Amazon also updated many of its apps and services, seeking to raise the tablets' overall value through richer content and services. Amazon is no long pushing price drops and is instead maintaining its core market through integrating appropriate hardware specifications with applications.

Amazon's re-designed 7-inch Kindle Fire HD is selling for US$139, targeting the 7-inch entry-level tablet market. Although the tablet has no advantages against other similar-specification or white-box products in terms of hardware, Amazon's services will still allow it to see good demand.

Amazon's 7-inch Kindle Fire HDX, which features a price point and specifications similar to the second-generation Nexus 7, and 8.9-inch Kindle Fire HDX 8.9, targeting to compete against iPad, are both meant to enhance the user experience, and are not for price competition.

Compared to other similar-specification tablets from competitors, Amazon's new Kindle Fire tablets enjoy about US$20-30 additional value. Amazon's decision to halt the production of its previous-generation Kindle Fire instead of offering a price cut is partly due to the possibility that the old tablet does not support the new operating system. The decision also shows that Amazon has not interest in the sub-US$100 tablet market.

Digitimes Research expects Amazon's Mayday service to become a tool that provides simple supporting services to average users in the short term and will expand to become an online customer service in the long term. Amazon has also been addressing complaints such as lack of apps and lack of differentiated digital content.

Compared to its low-price strategy in the past few years, Amazon is no longer competing against other brand vendors directly over hardware, and is instead focusing on improving specifications and strengthening services to differentiate from others and increase its value. Although the new strategy is unlikely to help expand Amazon's user base in the short term, customer satisfaction is expected to bring long-term benefits to the brand vendor.

Global notebook shipment forecast, 2017 and beyond

RESEARCH EXTRAS | Jan 25, 14:34

Digitimes Research estimates that 2016 was another down year for the global notebook market, with shipments dipping below 150 million. While the market will continue shrinking in 2017, the drop will be much less dramatic, as Windows 10 adoption in the enterprise...

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Global tablet market – 4Q 2016

GLOBAL TABLET | Mar 9, 14:10

In the fourth quarter of 2016, global tablet shipments reached 52.25 million units, showing on-quarter growth of 14.3%.

Taiwan handsets – 4Q 2016

TAIWAN MOBILE DEVICE | Mar 3, 14:43

Taiwan's presence in the global handset market continues to shrink. Its share of global shipments is expected to drop below 2% in the first quarter of 2017.

China smartphone AP shipments – 4Q 2016

CHINA SMARTPHONE AP | Feb 24, 14:04

Digitimes Research forecasts smartphone AP shipments to China in first-quarter 2017 will show an on-quarter drop of 15.9%.

Global notebook shipment forecast, 2017 and beyond
Global AP demand forecast, 2017-2020
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.