Skip to main content

Amazon Caught Buying Parts for Kindle Fire Sequel

Isn't that typical. Just as we're getting to know our current hardware, a company has to fire up the ovens and bake an improved sequel just months after the original hit stores. It's really been no secret that Amazon pushed the first Kindle Fire out the door to beat holiday traffic, and that the company would pull out the big guns for a better tablet in 2Q12. Still, after shelling out a mere $200 just three months ago, only to see it become obsolete in mere months, is downright depressing.

Nevertheless, unnamed sources from the upstream supply chain is adding a bit of lighter fluid into the Kindle Fire 2 rumor mill, claiming that Taiwan-based chassis maker Catcher Technology has recently received orders from Amazon for a new Kindle Fire. Catcher will supposedly supply the chassis to Amazon from its plants in Taizhou, China with estimated gross margin to be more than 40-percent.

Naturally, Catcher has declined to comment about its clients. But the sources noted that Catcher will likely increase its number of CNC machines to 15,000 this year to help boost capacity and satisfy the strong demand from the tablet industry, especially the iPad.

The news follows reports that ODM orders for the Kindle Fire have been cut in half as of January, meaning that Amazon may be gearing up to flood the market with a new model. There's talk that Amazon might release two Kindle Fires in mid-2012: a refreshed 7-inch version and a larger, somewhat pricier 9-inch version. The latter model is expected to take on Apple's iPad directly whereas the former will address issues consumers had with the original model such as a lack of volume controls, a lack of an SD card slot and more.