Amazon keeps up aggressive pricing strategy - knocks $30 off Kindle Fire

by David Needle

March 13 2013

Amazon has dropped the price of its Kindle Fire HD tablet from $299 down to $269. Along with the pricing news, the online retail giant announced, the Kindle Fire HD is now available not only in the U.S. but in the UK, Germany, France, Italy, Spain and Japan as well.

Considered the “big screen” model in the Kindle family that started as an ebook reader, the Kindle Fire HD sports an 8.9-inch display.

At the low end of Amazon’s tablet family is the Kindle Fire, which has a smaller 7-inch display and launched a bit of a price war when it was released in late 2011 at $199.99, a price later matched by Google with its 7-inch Nexus 7 tablet.

Amazon’s VP for Kindle, Dave Limp, said the company was able to drop the price thanks increased production volums and decreased costs.

“Across our business at Amazon, whenever we are able to create cost efficiencies like this, we want to pass the savings along to our customers,” he said.

The 4G version of Kindle Fire HD remains priced at $399.

Unlike Apple which counts on high profit margins for all its products, Amazon keeps the Kindle’s profit margin close to the bone. Amazon profits indirectly from Kindle sales because the device helps it sell more goods and services via its online store.

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