Amazon created the sub-$200 tablet market when it introduced its Kindle Fire tablet in 2011 for $199, selling the hardware at a break even point and making no profit or loss. Now, almost two years later, they are rumoured to be ready to shaking up the sub-$100 tablet market as it prepares a low budget 7-inch Amazon Kindle Fire HD tablet.
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According to rumours, Amazon is preparing to shake things up again as they ready a $99 7-inch Kindle Fire HD. They’re expected to sell it again at cost price, rather making profit on content sold on the platform. The original Kindle Fire brought along the budget friendly tablets we see today from large manufacturers including Google’s Nexus 7 tablet. The reason for its low price is expected to be the purchase of Texas Instruments’ remaining chipset supplies as well as the lowered cost of manufacturing such a mechanism nowadays.
The $99 Kindle Fire HD is expected to feature a 7-inch 1280×800 pixel display and discounted Texas Instruments OMAP 1GHz dual core processors. No further information has been revealed, but considering that Amazon always operates on low margins and they are content focussed, the move may prove to be beneficial to the company in the long run.