First, there’s a new Kindle Fire coupon for some great discounts -
- Kindle Fire Coupon is FIRELOVE. You have to enter it at checkout. The final page, where you have to press ‘Confirm’ to send order, has a spot on the right to enter this Kindle Fire Coupon.
- $30 off on the $299 Kindle Fire HD 16 GB. That makes its price $269.
- $50 off on the $499 Kindle Fire HD LTE. That makes its price $449.
- Coupon can only be used once per customer.
- Valid only in the US.
- Valid only till February 8th.
Tip of the hat to Steve Windwalker at Kindle Nation Daily for the heads up on this.
Kindle Fire Coupon – Kindle Fire HD Coupon Rules and Restrictions
This is what the Kindle Fire HD product page says -
Through February 8th, 2013, save $30 on Kindle Fire HD 8.9″ or $50 on Kindle Fire HD 8.9″ 4G LTE. Enter promotional code FIRELOVE at checkout.
These are the details -
- The Kindle Fire HD 8.9″ Coupon is valid until February 8th, 2013 (February 8th 2013 is included).
- Kindle Fire HD Promotional Code: FIRELOVE. Has to be entered at checkout. Important: You will only get the discount if you enter the coupon at checkout.
- Limit of one discount per customer.
- US customers only.
- Valid on all version of Kindle Fire HD 8.9″ sold by Amazon.
- Amazon can cancel promotion at any time.
- May not be combined with other offers.
- Not valid with 1-Click ordering.
This brings up an interesting question.
Why is Amazon offering a $30 off Kindle Fire HD coupon, and a $50 off Kindle Fire HD LTE coupon so soon after launch?
Let’s consider the data points and make some assumptions -
- B&N offered a $30 Gift Card with Nook HD+ and Nook HD just this weekend. This is on devices that are already ridiculously cheap.
- Amazon and B&N have offered discounts and $50 off discounts and $25 gift cards on their devices ever since launch. This is despite both devices severely undercutting the equivalent Apple versions (iPad, iPad Mini).
- Assumption #1: The cheap prices of Kindle Fire HD 8.9″, Kindle Fire HD 8.9″ LTE, Nook HD+, Kindle Fire HD, Nook HD are not proving enough to sell them.
- Assumption #2: The discounts are either working very well, or they are leading to at least some sales. Why else would B&N and Amazon keep repeating them. I’ve counted 3 or 4 different Kindle Fire coupons and Kindle Fire HD coupons since November. And 4 or 5 weekends of coupons or discounts for B&N.
- Assumption #3: The iPad Mini has to do with it.
So, the overall assumption would be that iPad Mini has greatly affected sales and the only way Amazon and B&N can compete is by going back to their calling card – lower prices, greater value for money.
Earlier we had very clear cut differentiation -
- iPad at $499 and above.
- Kindle Fire and Nook at $199.
- The difference of $300 made the Kindle Fire and Nook safe.
Now, we have the following situation -
- Kindle Fire HD and Nook HD at $199. iPad Mini at $329. The difference is just $130 now.
- Kindle Fire HD 8.9″ and Nook HD+ at $299/$269. iPad at $499 and iPad Mini at $329. The difference is much smaller plus iPad Mini is effectively in the same price bracket.
So we suddenly have very little price differentiation left.
What should Amazon and B&N do?
Make the prices lower PERMANENTLY.
Kindle Fire HD should be $149. Nook HD should be $149.
Kindle Fire HD 8.9″ should be $199. Nook HD+ should be $199.
$329 vs $199 is just a $130 price difference and it doesn’t seem much.
$329 vs $149 is a ‘twice the price’ effect.
Sooner or later Amazon and B&N will have to do this. Might as well do it now and get lots of sales. Once the iPad Mini with Retina Display comes out sales might fall even more.
What if our Assumptions are Wrong?
It’s quite possible that the Kindle Fire HD coupon means Amazon is being agressive and trying to strengthen a strong position. As opposed to being defensive and trying to make up for poor sales.
We do know that B&N had bad sales of HD and HD+.
We also know that Amazon had really good sales of Kindle Fire HD. Supposedly giving it 33% market share of the Tablet Market in the US (according to Localytics). Please Note: This is for the Quarter only. It just means that in the Holiday Quarter 33% of Tablets sold in the US were supposedly Kindle Fire Tablets.
That means one of two possibilities -
- Kindle Fire HD and Kindle Fire sold very well. Kindle Fire HD 8.9″ did not sell well. The current Kindle Fire HD coupon is trying to ignite Kindle Fire HD 8.9″ sales.
- Kindle Fire HD 8.9″ did indeed sell well. Amazon is trying to further increase its lead via this Kindle Fire HD coupon.
My money is on the former. However, the latter is also a possibility (albeit an unlikely one).
It the former is the case, then it suggests that people are choosing iPad Mini over iPad and Kindle Fire HD 8.9″ and Nook HD+.
The Kindle Fire HD Coupon will also show up if you visit the Kindle Fire HD 8.9″ page.