Amazon made a splash in 2011 when it unveiled the Kindle Fire. The tablet appealed to those who couldn't afford an iPad or simply did not want the big 10-inch tablet. It sold well, and Amazon has been hard at work developing a successor to the Kindle Fire. If the rumors are true, then Amazon not only plans on attacking the 7-inch budget tablet market, but also might take on the big dog 10-inch tablets in an effort to keep itself relevant.
An offhand comment by a Staples retail chief to Reuters said that Amazon is working on five or six different tablets. Other rumors confirm that, at the very least, Amazon is working on a 7-inch tablet that will be a true successor to the Kindle Fire, and a 10-inch tablet that it hopes will broaden its market appeal.
The move highlights growing concern in the cheaper tablet market that once Apple enters it with the iPad Mini, every other competitor will be cast aside by consumers. The iPad Mini is expected to be revealed by Apple on September 12 and be priced at around $249.
NPD DisplaySearch analyst Peter Shim predicted earlier this year that Amazon will release a line of new Kindle Fires with different specs. For instance, there would be a 7-inch with no camera, one with a camera, and one with a camera and 4G capabilities. This kind of pricing strategy should help Amazon against Apple and Google, whose tablets don't have that level of customization.
At the moment, the old Amazon Kindle Fire is being brushed aside by the newer, more powerful and just-as-cheap Google Nexus 7 tablet. Once the iPad Mini is inevitably released, Amazon will have a tough time competing with both the Google and Apple brand. By aiming for both the 7-inch and 10-inch tablet market, Amazon would have a good chance
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