Amazon Names Foxconn as 2nd Major ODM for Kindle Fire 2, Shipments to Commence in May

by: GeneFebruary 19, 2012
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Following the huge success of the Kindle Fire tablet/E-reader is the Kindle 2, the next-generation tab that’s been rumored to sport a larger 10-inch display. We’ve been waiting all this time for Amazon to announce a follow-up to the fiery Kindle Fire. Thankfully, the well-established Taiwanese China Times has recently released a publication citing Foxconn as Amazon’s newly nominated ODM to manufacture the Kindle 2.

This makes Foxconn the second major ODM next to Quanta – the sole developer of the original Kindle Fire. It’s also important to note that Amazon has a good list of manufacturers up its sleeve. Among them are ACES, Prime View, CviLux, Singatron and of course the aforementioned Quanta and Foxconn. The China Times also added that Amazon is now the one handling the selection and certification of components in order to cut the overall manufacturing cost.

Amazon has learned its lesson. When Amazon unveiled the Kindle Fire last year, the Bezos-led company decided to sell the device at a very low price of $199 in spite of the fact that each tablet costs nearly $250 to make. Amazon’s bold and risky strategy worked – at least for its customer-base. And, it proved to be worth it. With the rising demand of the Kindle Fire and with its popularity soaring high like never before, the market appears to be strongly established and ready for anything that will come.

Introducing the Kindle 2 should be easier for Amazon this time around.  But, can we expect the pricing to increase as well? That we don’t know yet. Unfortunately, other than the 10-inch display, other detailed specs of the Kindle 2 have not been disclosed. But what we do know is that it will be released soon with the commencement of component deliveries in March and with shipments scheduled sometime in May or June.

Image Sources: CNET, Ubergizmo

  • hakimio

    $250 to make? Where did you find that number?

    • I’ve seen that number tossed around as well for the cost of the original Kindle Fire.

      • hakimio

        Really? Again where? Someone figured that as Kindle Fire has the same CPU and the same size screen it should be priced the same as Nook Tablet? Also the article says “250 to MAKE”. Does the author honestly believe that Amazon looses $50 on every tablet sold? That’s just plain ridiculous.

        • Hakimio, thanks for clearing that up.

        • Im4u2nvrc

          Video game console manufacturers this do all the time. Take for instance the ps3, on release. They lost over $50 per unit sold, possibly even more. They were counting on the software sales to make up for their early losses. This is the only way technology manufacturers can justify selling cutting edge tech at below market prices. To help drum up early support in the market. They will make back all incurred losses and gain profit over the life of the hardware. Just the kindle, they don’t make any profit with the hardware, but I’m sure the average consumer will buy more than one book during the life of the unit, thus making the short run loss justifiable compared to the long run gain.

    • hakimio

      Accoding to IHS it actually costs only $201.7 to manufacture ->$201-70-to-Manufacture.aspx

  • Duke

    Every retailers out there are going to make a profit some how, some way. Nobody are doing business just to lose money.

  • Seanh

    Das coo but girl think it it’ll suck

  • Leonel A Umana

    As long as it is at least 100 dollars to 300 dollars less then IPAD3 with better spec and more features then the Kindle Fire then the Kindle Fire 2 is another winner. It is the true alternate to the Ipad with out all the bell and whistle and Apple monopoly on all apps and feature.

  • Daisy

    I think that they should definitly add a camra!

  • Daisy

    I think they should definitly add a camra!