Amazon permanently drops prices on its 8.9" Kindle Fire HD tablets
Amazon fired a shot at rival cheap tablet makers Wednesday by dropping the price of its Kindle Fire HD 8.9” to $269 and up.
The permanent price drop applies to all versions of the 8.9-inch tablet. Here's a summary of the price changes:
- 16 GB model with Wi-Fi, was $299, now $269
- 32 GB model with Wi-Fi, was $369, now $299
- 32 GB model with 4G LTE, was $499, now $399
- 64 GB model with 4G LTE, was $599, now $499
The prices above are for the “With Special Offers” version of the tablet, which shows deals and advertisements on the lock screen. These ads can be removed for $15 extra.
Keep in mind also that the 4G LTE model does not include mobile broadband service. An introductory data plan from AT&T costs an extra $50 for one year, and includes 250 MB of data per month, plus 20 GB of Amazon cloud storage and a $10 app credit.
Amazon has dropped the price of the Kindle Fire HD 8.9” before. On Valentine's Day, the same discount prices applied to the Wi-Fi model, while the 4G LTE models were $50 more expensive than they are now. This price drop, however, isn't going away.
Pressure on competitors
The lower prices should put more pressure on Barnes & Noble, whose Nook HD+ also sells for $269 and up. Despite the price difference, unofficial estimates have claimed that Kindles were more popular than Nooks last holiday season, leading to rumors that Barnes & Noble will scale back its tablet plans. (The company has only said that it has no plans to discontinue its current product line.)
It'll also be interesting to see if Google reacts, seeing as its Nexus 10 tablet sells for $399. This could be the start of another price war, reminiscent of the one that led e-readers to crack the $200 barrier nearly three years ago.