What Should Amazon Do for New Kindle Fire?

As the world's largest Internet retailer, Amazon is facing a transformation trend of digitization, it is necessary to enhance the digital content business with the tablet computer platform, this makes the new generation of Kindle Fire sales become a key factor. According to the news report, Amazon is expected to be released a new tablet on Thursday.
Amazon may at least release an upgraded version seven inches Kindle Fire. But it may also be introduced big-screen version, and upgrade the Kindle e-reader.

"The unknown factor of the new generation of Kindle Fire is how low the price it will be" So Young Lee, analyst at SunTrust Robinson Humphrey, an investment company.

Amazon is willing to small profits or even losses, sale of tablet PCs and e-readers, in order to expand market share, and again after the sale of higher-margin digital content, including books, videos, games, applications and music like the Internet user.

Overall, Amazon will compete with Apple, Google and other tech giants tablet market, because these devices has quickly become the choice for many Internet users Internet channels. As the world's largest Internet retailer, Amazon is natural to expand in this new field exposure.

A successful tablet computer on Amazon significance far better than Google. "To Crown Pacific Securities analyst Chad Bartley said.

Amazon in the leading position in the physical book, CD, DVD, video games field, but these products are digital direction, and so, the company must follow the market footsteps, and be able to adapt to the latest trends to ensure that its own market share.

"Amazon must have a device let users purchase and consumption of digital content." Bartley said.
Amazon last year launched an ultra-low cost of $ 199, Kindle Fire, and therefore a pleasant surprise to investors. Professional evaluation is not satisfactory, but the product is still impressive sales, Amazon has won more than 20% share in the Tablet PC market.

Since then, Google has also launched a $ 199 Nexus 7 Tablet PC and configure higher; Barnes & Barnes & Noble Nook tablet's price cuts to $ 179 and the upcoming Microsoft Surface tablet may also be only $ 199.

Kindle Fire cost has dropped significantly since released last year, which make it possible for Amazon cuts down its price.

Compared with the Kindle Fire, Google Nexus 7 has a more powerful processor, more storage space and a clearer screen, but also equipped with a camera Kindle Fire.

"I expect the new Fire might be like Nexus 7, the price is $ 199. Investment company RW Baird analyst Colin Sebastian said," If you do not meet this standard, it is a problem if they can at the same prices beyond the Nexus 7, definitely better. "

So Young Lee believes that Amazon may be a further decline in the price of the new Kindle Fire through advertising. The company has cut the number of e-reader with a similar pattern. For example, the cheapest Kindle for only $ 79, but it will be accompanied by some of the advertising sold for $ 109, while the ad-free version of the same.

"Incidental advertising Kindle Fire can reduce the price, thereby expanding the audience," said Maria Alegre, the his Chartboost designed to help game developers through a variety of mobile devices income generation.

Game and application developers are optimistic about the Kindle platform. PDF maker is one of the most popular apps and software what is designed for you to convert ebooks to PDF for reading on Kindle, Kindle Fire, Nook and other popular ebook-readers. Amazon users have become accustomed to spend money to buy content, and the company's a key pay-per-click system can simplify the purchase process.
Alegre said, what Amazon really lacking is a huge audience like Apple. Apple and Google, attract have attracted large of amounts of user respectively with Android and iOS operating system.

"Quantity is currently the most important task of the Kindle Fire." She said.

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