Amazon is expected to bring the Kindle Fire 2 out to the market soon to keep up with the Nexus 7. The first Kindle Fire was a good try by the company but it was not perfect. According to Reuters, Amazon is expected to introduce up to 5 or 6 tablet SKUs in the future. Some folks are assuming that Amazon is bringing 6 new tablet models to the market. But in reality, Amazon will release 7 and 10 inch tablets in multiple flavors. A few months ago, we did hear stories about a 8.9 inch Kindle but it is not clear when Amazon will release that product.
There is some good news for Amazon Kindle fans here. The cost to make the Kindle Fire has been dropping rapidly. That means Amazon will now have the opportunity to cut the price of the Kindle Fire 1 and stay aggressive in its fight against other Android tablet makers. The parts that go into the Kindle Fire cost $133.80 (according to IHS iSuppli). It would not surprise me if Amazon started offering the Kindle Fire for $149 very soon.
The tablet wars are just starting. Even though the Nexus 7 is catching up to the Kindle Fire in usage fast, Amazon will stay determined to dominate the market with aggressive pricing. It will be interesting to see how well the new Kindle Fires perform.