Amazon aims for high end of tablet market

Amazon has taken the wraps off two new Kindle Fire models aiming to challenge Apple and shore up its position in an increasingly crowded tablet market

Amazon is planning to open three more warehouses in the UK, creating around 2,000 jobs, as it ramps up its ambitions in the tablet market with fresh versions of its Fire device.

The online retailer announced two new Kindle Fire HD models last night, with a 7" and an 8.9" screen, aiming not only to challenge Apple's dominant position but to protect its own position following Google's launch of its own Nexus tablet in July and the arrival later this autumn of Microsoft's Surface.

The Fire should be available in the UK from next month costing around £159 and Amazon's CEO Jeff Bezos, CEO of Amazon, said that the philosophy of the vendor was to make money on selling books and films to users rather than getting its profits from the hardware.

“We’re taking on the most popular price point for a tablet, $499, but doubling the storage and incredibly, adding ultra-fast 4G LTE wireless,” said Jeff Bezos, Founder and CEO.

He said that it was aiming to take on the high end of the market backing the hardware with its service and the "enormous content ecosystem" that it had at its disposal.

The retailer will also have made itself popular with Downing Street with the plans to establish three warehouses in the UK by 2015 creating a couple of thousand much needed jobs.

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