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Amazon’s Kindle Fire HD puts new price pressure on Microsoft Surface

Amazon’s Kindle Fire HD puts new price pressure on Microsoft SurfaceAgain in June, when Microsoft announced plans for its Surface tablet, the corporate stated the pricing for the preliminary mannequin, the Surface RT, can be “aggressive with a comparable ARM pill.” On the time, that was a thinly veiled reference to the iPad, however due to Amazon’s new Kindle Fire HD lineup, the comparability simply grew to become extra complicated.

Amazon’s new pill, unveiled yesterday, will begin at $199 for a 7-inch model. The Kindle Fire HD with an 8.9-inch display will run $299, and one with an 8.9-inch display and 4G LTE wi-fi will go for $499.

Microsoft hasn’t but introduced pricing for the Surface. In a analysis notice this morning, Shaw Wu, an analyst with the agency Sterne Agee, says the new Kindle Fire lineup adjustments the context for Microsoft’s pricing, no matter it seems to be.

He writes, “We consider the pressure for MSFT to price its Surface pill aggressively is now better than ever. Preliminary press experiences indicated a price level of $599, a premium to the new iPad, however we now consider it can probably have to price at $299 or decrease to offer it a combating likelihood.”

Amazon’s Kindle Fire HD puts new price pressure on Microsoft SurfaceIn some ways, the Kindle Fire HD and Microsoft Surface are very totally different. For one, the Surface is is significantly bigger, with a ten.6-inch show. The Microsoft gadget’s keyboard cowl accent is one other differentiator.

As well as, the Kindle Fire HD will be ad-supported, with sponsored screensavers (proven at proper) and an advert within the nook of the house display.

However, the 4G choice for the $499 Kindle Fire HD offers it an edge over the Microsoft Surface, which is expected to come with WiFi only to start.

Backside line, many individuals will probably be selecting amongst a Kindle Fire HD, a Microsoft Surface RT, a Google Nexus 7 and an Apple iPad in terms of their subsequent (or first) pill. And in terms of pricing, Amazon simply set a new bar, and it’s low.

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