Amazon is planning to release a high-end Fire tablet running Android as early as next year, according to six people familiar with the matter.

The move marks a shift from its long-used Fire OS, with the new project codenamed Kittyhawk.

This change could make Fire tablets more appealing by offering better compatibility with Android apps and devices.

The new tablet may be priced around US$400, nearly double the cost of the Fire Max 11.

Amazon is also developing lower-priced tablets using its Vega operating system, currently used in some Fire TV devices.

According to IDC, Amazon holds 8% of the global tablet market, just behind Lenovo at 8.2%. Apple leads with 33.1%, followed by Samsung at 18.7%.

Amazon declined to comment on the plans.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Amazon’s tablet subsidy model hits diminishing returns after 14 years

Amazon’s decision to nearly double tablet prices signals a fundamental shift away from its loss-leader hardware strategy that began in 2011.

The company has consistently sold Fire tablets at or near manufacturing cost to drive digital content sales, with the original Kindle Fire priced at $199 despite Amazon taking a loss on each unit sold 2.

Now Amazon plans to price its new Android tablet around $400—nearly double its current $230 Fire Max 11—suggesting the subsidy model may no longer generate sufficient returns from content and services 1.

This pricing shift coincides with Amazon closing its Android Appstore after 14 years of operation, indicating the company is consolidating its app distribution strategy around its own devices rather than expanding to third-party platforms 3.

The move suggests Amazon has concluded that maintaining artificially low hardware prices to capture users isn’t sustainable when those users face significant limitations in app availability and device compatibility.

2️⃣ Walled garden approach forces Amazon toward ecosystem openness

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