Amazon Prepares for Holiday Battle
Amazon.com dominated the headlines this morning by unveiling a new generation of Kindle Fire HDX tablets. The e-tail giant's new flagship 7-inch device will now start at $229, a moderate increase from $199. Amazon is also aggressively dropping the price of the second-generation Kindle Fire HD to $139, segmenting the market further.
The pricing move follows Google, which released updated Nexus 7 tablets a couple months ago while also raising the entry-level price to $229. Unlike Amazon, Google discontinued the outgoing model and is not targeting lower price points.
Inside the Kindle Fire HDX is a quad-core Qualcomm Snapdragon 800 processor, replacing the Texas Instruments OMAP chips that have historically powered the Kindle Fire family. This marks the latest tablet win for Qualcomm, while rival NVIDIA continues to miss out on big spots this year. NVIDIA will power Microsoft's Surface 2, but the software giant's track record with Surface unit shipments is poor.
In other tech news, IHS iSuppli estimates that Apple's new iPhone 5s costs $199 to build, while the 5c costs $173. Those are lower than 2012 cost estimates, which suggests that Apple may have some margin tailwinds. However, investors will need to remember other factors that affect overall gross margin.
In today's episode of Tech Teardown, Erin Kennedy discusses recent headlines with Evan Niu, CFA.
The titans of tech
Amazon and Apple are two of the five key players jockeying for position in the trillion-dollar mobile revolution. To find out which of these giants is set to rule the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!
The article Amazon Prepares for Holiday Battle originally appeared on Fool.com.Erin Kennedy owns shares of Apple. Evan Niu, CFA, owns shares of Apple and Qualcomm. The Motley Fool recommends Amazon.com, Apple, Google, and NVIDIA. The Motley Fool owns shares of Amazon.com, Apple, Google, Microsoft, and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.