Amazon.com, Inc. (AMZN) Gets Aggressive: Apple Inc. (AAPL), Google Inc (GOOG)

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We don’t sell and tell
Investors will still be left guessing though for a definitive answer, since Amazon.com, Inc. (NASDAQ:AMZN) doesn’t report hardware sales or product mixes. It’s also not as if you can glean any information from Amazon’s inventory figures either, since the increase to $6 billion as of the end of 2012 has little to nothing to do with Kindle Fire inventory and everything to do with the whole largest-e-commerce-company-in-the-world thing.

Recipe for a price drop
The new pricing further distances the 8.9-inch Kindle Fire from the iPad Mini. We’re now talking about a $60 to $70 price gap, which makes Amazon’s tablet just a little bit more appealing to price-sensitive consumers.

Tablet Display Size Entry Level Price
8.9-inch Kindle Fire (Wi-Fi) 8.9-inch $269
iPad Mini (Wi-Fi) 7.9-inch $329
8.9-inch Kindle Fire (LTE) 8.9-inch $399
iPad Mini (LTE) 7.9-inch $459

Sources: Amazon and Apple Inc. (NASDAQ:AAPL).

Meanwhile, Google has also moved up-market into the larger-sized tablet market with the Samsung-built Nexus 10, which retails for $399.

Intensifying competition, weaker-than-expected sales, component cost reductions, and a disinterest in hardware margins are the perfect recipe for a 8.9-inch Kindle Fire HD price drop.

The article Amazon Gets Aggressive originally appeared on Fool.com and is written by Evan Niu.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, and Google. The Motley Fool owns shares of Amazon.com, Apple, and Google.

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