The new line will be called the Kindle Fire HD. As you might have guessed the in the name HD is because the display is actually capable of full 1080p HD. The new devices will come in multiple flavors from a 7-inch to an 8.9-inch with LTE and 32GB of memory. Although we do not have confirmation on all models it looks like the base specifications will be a Texas Instrument OMAP 4470 Processor 1GB of memory and resolutions of 1920x1200. Amazon will also be one of the first companies to introduce MIMO (Multiple Input Multiple Output) for their wireless along with dual 2.4GHz and 5GHz bands. In all this setup should make it faster than most other tablets on the market when you are using WiFi.
Amazon has more features packed in as well and you can find them all over the internet considering the vast amount of coverage out there. Many of these features are going to be specifically for the e-reader functions of the Kindle Fire HD (which is primarily what these are), but they still add value to the product. What is interesting is the pricing structure and timing of the release. The announcement comes on the same day that a federal judge has agreed to the settlement proposed by the three publishers that chose not to remain with Apple in the e-book price fixing suit. US District Judge Denise Cote agreed to the terms that the publishers will dissolve their contracts with Apple and allow retailers to set their own prices for at least 2 years. It is a victory of sorts as it gives Amazon and other e-book dealers room to offer their products at lower prices and removes the exclusivity deal that was in place with Apple (exclusive pricing).
As this was happening Amazon was launching HD capable tablets starting at $199 for a 16GB 7-inch model. This is the same price as the 8GB Google Nexus 7 and has more space and much better resolution and better wireless. For $50 more than the 16GB Nexus 7 you get more screen space with the Kindle Fire HD along with better a better processor, higher resolution and better WiFi. It is quite a combination just in this product range and that is before you start comparing it to the unannounced and unconfirmed iPad Mini. Even maxing everything out you can pick up a 32GB 8.9-inch Kindle Fire HD with LTE for $499 which is still cheaper than some of the lower end 16GB iPads without cellular connectivity.
It is a very interesting play and one that we feel will certainly impact sales of Amazon’s competition. Amazon announced other updates to their tablet line up, but in the end the Kindle Fire HD is what we all wanted to know about. Amazon will begin shipping the first models (the 7-inch 16GB version) on September 14th, just two days after Apple’s big press event. Anyone think that is a coincidence?
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