AWOL From Amazon’s New Kindle Fire Tablet Lineup? That (Mostly) Ad-Supported Model*

* Updated below.

From my Forbes.com blog The New Persuaders:

A few days ago, it looked like an ad-supported (read: cheap) Kindle Fire might be in the lineup introduced this morning at Amazon.com’s debut of new Kindles in Santa Monica.

Sorry, no dice. The company did introduce a lot of other products, of course, including a faster, cheaper, $159 version of the Kindle Fire with longer battery life, as well as new high-definition “HD” models–including, in something of a surprise, one that has a nearly 9-inch screen. The 7-inch version with 16 GB of memory will be $199, the original price of the first Kindle Fire. It will ship Sept. 14. The 8.9-inch version will be $299, $200 less than Apple’s iPad, and will ship Nov. 20.

Amazon CEO Jeff Bezos also pulled an Apple-like “one more thing” move by introducing a $499 8.9-inch Kindle Fire, also shipping Nov. 20, that has 32 GB of memory and much faster 4G data connections, though that service will cost $50 a year for 250 MB a month. That doesn’t seem like much data, at least for video streaming purposes.

On the more traditional e-book front, Amazon also showed a new Kindle called Paperwhite for $119 for a WiFi version and $179 for a free-3G version, as well as a newly named basic non-touchscreen Kindle now called the $69 Kindle. That one, $10 less than the previous version, is the ad-supported Kindle.

But it’s not the cheaper ad-supported Kindle Fire that some folks apparently had expected. * Update: To make it clear, as Amazon did not at the launch event, all of the new Kindle Fire models will have some advertising, or what Amazon calls “special offers” and “sponsored screensavers” that previously were only on the Kindle with Special Offers. So in a sense, the whole line has at least a small ad component that ultimately may have some impact on the price of the devices. But it still looks fairly minimal compared with the potential for a tablet whose cost could be substantially subsidized by ad revenues in a similar way that carriers subsidize cell phones. Although Engadget reported Amazon would soon allow buyers to pay a fee to avoid ads, CNET now reports Amazon has no immediate plans for that.

Why not a much cheaper, largely ad-supported model, given that it would have provided Amazon an additional way to differentiate itself from Google’s, Apple’s, and other tablets? …

Read the complete post at The New Persuaders.

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