Amazon is mulling changes in its component purchasing strategy that it has been using for the Kindle Fire tablets. So far, Amazon has been relying almost entirely on the ODMs, though that could change with Amazon likely to place itself in a position to be calling all the shots. However, all of it is still in rumor territory with neither Amazon nor its upstream supply chain partners willing to spill the beans just yet. The Taiwan based Quanta Computer and Compal Electronics are the two upstream ODM partners of Amazon with the former being the largest manufacturer of the Kindle Fire tablet series.
However, the ramifications could be far reaching if this turns out to be true. For as sources have mentioned, supply chain managements happens to be the trickiest aspect for content suppliers to deal with in the hardware manufacturing industry. Also, what ODM partners fear is that their margins will be affected once their clients begin to purchase the components themselves. All of this could come into effect with the new Kindle Fire that is slated for an April debut followed by a commercial release in May.