Amazon decided to add Foxconn to the Kindle Fire 2 OEM list. To lower the costs, Amazon will also take over the selection/certification of components, China Times reports.
It is an open secret that the first Kindle Fire was rushed to market, and used an off the shelf design Quanta already had for RIM’s Playbook. The decision on the stuff that goes into the device, was also Quanta’s.
But while the first Kindle Fire was a huge success, selling it for $199 while it cost an estimated $250 to make, cut into Amazon’s profits. Now, that the Christmas season is over and there is no need to rush anymore, Amazon is taking steps to reduce the amount of money it loses on tablets.
According to China Times sources in the supply chain, Amazon has tapped Foxconn as a second OEM to assemble the Kindle Fire 2. The original Fire will still be made by Quanta, but now Amazon is taking over the securing of components that go into its tablets. With the success of the first Kindle Fire, and the prospects of much bigger sales this year, Amazon now has the clout to get pretty good prices on many parts.
While the final Kindle Fire 2 design specs are not locked-in yet, the suppliers expect to start component deliveries in March. Next generation Amazon tablet volume shipments are scheduled for May/June.