This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Amazon Kindle Fire HD: First Impressions (Update 1)

The 8.9-inch tablet is good value at $299, but paying for 4G LTE would set you back an additional $200, which is where it gets complicated if you're looking for an iPad replacement. At $499, the 4G version of the Kindle Fire HD still seems expensive compared to Apple's popular tablet. Even the $299 version may struggle to claw share from Apple after the tech giant cut the iPad 2's price to $399. The 7-inch version of the Kindle Fire HD, which starts at $199, seems like better value for your hard-earned dollar. Given that Amazon also cut its original Kindle Fire price to $159, I wouldn't be surprised to see this device outsell the new versions over time, given customers' price-sensitive natures, especially in this economy.

Amazon is making a valiant effort to compete in the high-end tablet market, alongside Apple. The Kindle Fire HD is much improved over the Kindle Fire, not only because of new hardware, but new software as well (Kindle Serials, more apps, games, Kindle FreeTime, for example). Ultimately, though, it feels as if the company will come up short in making a dent in the high-end tablet market Apple has dominated since 2009. The effort is there, but Amazon has to convince consumers to shift away from the Apple ecosystem.

There have also been questions about the data plan Amazon is offering. Amazon announced a 250 MB per month data plan for $50 per year for the first year, a significant cost savings over the iPad, but did not say the data plan provider (though it looks liked an AT&T logo). There was confusion during the event over whether the cost of the data was being subsidized by Amazon and would revert to original prices. An Amazon spokeswoman confirmed that the $50 cost is only for the first year, and "after that customers can choose from one of AT&T's (T - Get Report) other standard plans."

Ultimately, the 7-inch tablet is one I'd recommend for purchase. If you're going to spend $499, I just can't see Amazon winning over Apple here, despite its best efforts. At that price level, it's just comes up short.

-- Written by Chris Ciaccia in Santa Monica, Calif.

>Contact by Email.

>To submit a news tip, send an email to:
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 -0.11%
AMZN $683.85 3.68%
DLB $46.98 -1.32%
TXN $57.85 1.42%
T $39.10 0.72%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs