In another aggressive move they have lowered the US starter price from $299 to $269.
In the UK the starter price is £229 which compares with the iPad2 entry level price for a maxi of £329. So coincidentally that’s exactly £100 cheaper! Another coincidence is that it is also exactly the same price as the Nook HD+!
We wonder if Google will react as they are now well above the average larger tablet price which is now virtually £300.
In total market terms in Q4 2012 IDC reckoned that the Kindle tablet family got about 11.5% market share in 3rd place behind Samsung with 15.1%. This move may well propel Amazon into second place by the end of the year with their wider market availability.
The Press release credits the price decrease as being achievable due to increased volumes “As we expand Kindle Fire HD 8.9” to Europe and Japan, we’ve been able to increase our production volumes and decrease our 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.”
It’s certainly good to see Amazon making the whole product range available in the UK. So how about some free movies in the UK Prime offering – it can’t be far away can it?
In other related news Home Retail Group (the Argos owners) have just released their end of year trading statement covering the 8 weeks ended 2 March and again quote specifically the demand for tablets as a positive influence. “Total sales at Argos grew by 4.3% to £501m. …. Like-for-like sales increased by 5.2% in the period. Consumer electronics continued to deliver an improved sales performance driven by strong growth in tablets, which together with further growth in white goods and core electricals, more than offset weaker trading in homewares.
Total internet sales grew in the period, resulting in internet penetration increasing to 43% of Argos’ total sales, up from 40% a year ago. This growth was supported by the mobile commerce channel in which sales grew by 117% versus last year.”
They appear to stock all the major US vendors products (bar the Surface) along with Samsung and many others. So further evidence of a buoyant market as indicated by IDC a few days ago.
Disclosure: We have Marketing Affiliate arrangements with Amazon