Last Thursday, Amazon released several new versions of the Kindle Fire tablet and a new Kindle e-reader, while dropping prices across the board. Most of the coverage so far has focused on how Amazon is determined to go for Apple’s jugular on pricing, which is correct.
However, as we discuss in our tablet forecast, there is also another reason why they absolutely had to do this: tablets are disrupting the traditional e-reader market. What’s more, the Nexus 7 became the new standard for mini-tablets and Kindle Fire sales had slumped after blowing out of the gates. The real reason for the revamp and price drops: Amazon had to protect the Kindle ecosystem.
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