This tactic is similar to how Apple positions ITS older iPhones and iPads When new versions come out. The strategy allows one manufacturer to cover multiple price levels, Increasing Their potential audience.
Of course, Amazon is now forced to compete with Google’s popular Nexus 7 tablets, ‘which is leaps and bounds ahead of the original Kindle Fire spec-wise but still costs just $ 199. Sales forecasts for the original Fire have Already Been To The Nexus cut two 7′s success. Reducing Fire to the original $ 169 and launching the Fire 2 at $ 199 would allow Amazon to compete with Essentially the Nexus 7 on two fronts.
Looks like the era of low-cost and Genuinely usable tablets is here, folks. This is the kind of Competition That Helps drive innovation. Even big bully and litigious Apple will be getting in the game With Their smaller tablet rumored iPad Mini, but I doubt Theirs will be under two bills.
Thanks Source : Dealnews