Eyeing the increasing popularity of electronic gadgets, the world's largest Internet retailer, Amazon.com, Inc. (AMZN) added two new e-readers — Kindle Voyage and $79 Kindle — to its Kindle Family. Additionally, the company refreshed its line-up of Kindle Fire tablets.
Kindle E-readers In Detail
These new e-readers are Amazon’s 7th generation of Kindle, which come with hardware improvements and new features designed for book lovers. Both the devices have a long battery life, an improved page-turning experience and latest features including Kindle FreeTime, Smart Lookup and Goodreads, helping readers to freely search and share books. The devices have an X-Ray feature, similar to Kindle Paperwhite, which provides useful insight into books.
On the hardware front, Kindle Voyage is very light and only 7.6 mm thin, weighing less than 6.4 ounces. The device will use a new Paperwhite display allowing readers to adjust the brightness according to the surrounding light. Additionally, the new e-book reader will have free 3G connectivity, helping users to save money on Wi-Fi.
$79 Kindle, an improved version of basic Kindle e-reader, will now include a touch screen, 20% faster processor and twice the storage capacity. However, the model has been priced 15% more than the current basic model. Both the $79 Kindle and Kindle Voyage, with a price tag of $199, are already available for pre-order.
Fire Tablet Updates
Amazon’s new Kindle Fire HD (high definition) tablets are available in two screen sizes — 6-inch, with a price tag of $99, and 7-inch, priced at $139 onwards, down from $154.
Additionally, Amazon upgraded its Kindle Fire HDX, which now includes a quad-core 2.5 GHz processor, 8.9-inch display, better sound and faster processor. It also includes WPS Office app, helping users to create and edit documents on the tablet. The app is integrated with Amazon’s Cloud Drive, which will back up documents on Amazon’s servers.
Amazon also added a kid-friendly Kindle HD tablet to its line-up. The 6-inch version of Kindle HD will be available for $149 and a 7-inch screen for $189. Both the devices come with a two-year warranty and one year of Amazon's FreeTime Unlimited. The Fire HD Kids Edition also disables in-app purchases as Amazon is in the midst of a dispute with the Federal Trade Commission (FTC) over allegations that it has unlawfully billed parents for unauthorized in-app purchases without their consent.
Shipment
Amazon expects the shipments of the new devices to start in October, a crucial time as the holiday shopping season will set in. However, Amazon's new devices will face competition from a variety of tablets and smartphones, including Apple's (AAPL) new iPhone 6 and 6 Plus — the current dominant player in the tablet segment.
To Conclude
Amazon’s constant upgrading of its e-book reader is surely benefiting for customers. However, while Amazon may have the best e-reader, Apple certainly has the best tablet. Despite the fact that Kindle has acquired many new features over the years, it is not a full-blown tablet yet. Therefore, given that the tablet market is far larger than the e-reader market, Amazon’s Kindle is unlikely to catch up with Apple’s iPad any time soon.
Currently, Amazon’s shares hold a Zacks Rank #4 (Sell). Other better-ranked stocks that are performing well at current levels include ACI Worldwide, Inc. (ACIW) and Citrix Systems, Inc. (CTXS). Both these stocks sport a Zacks Rank #2 (Buy).
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