Print 17 comment(s) - last by theapparition.. on Sep 4 at 1:01 PM

Kindle fire now accounts for 22% of U.S. tablet sales

While the Apple iPad (now in its third generation) has dominated the global tablet market, the tablet that has come the closest to making some headway against the market leader is the Kindle Fire from Amazon. With the next generation of Kindle Fire tablets incoming, Amazon issued a press release today stating that the first generation Kindle Fire is now "sold out".
Well in this case, "sold out" likely just means Amazon has ended production of the original Kindle Fire so it can ramp up production for the next generation of tablets. Amazon goes on to say that the Kindle Fire is Amazon's most successful product launch to date and that it has captured 22 percent of the U.S. tablet market in only nine months.
“We’re grateful to the millions of customers who have made Kindle Fire the most successful product launch in the history of Amazon,” said Jeff Bezos, Founder and CEO. “This has been a big year for digital products on Amazon—all of the top 10 sellers on since Kindle Fire launched just less than a year ago are digital products. Kindle Fire is sold out, but we have an exciting roadmap ahead—we will continue to offer our customers the best hardware, the best prices, the best customer service, the best cross-platform interoperability, and the best content ecosystem.”

Alleged next generation Kindle Fire [Image Source: The Verge]
In addition to the news about the original Kindle Fire's departure from this earth, The Verge has scored a solitary image of what it claims to be the next generation Kindle Fire.
Earlier reports have indicated that the second generation Kindle Fire will be available in both 7" and 10" varieties. Amazon is expected to announce the new Kindles in a Sept. 6 press conference.

Sources: Amazon, The Verge

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Sooo...
By Tony Swash on 8/30/2012 8:33:54 PM , Rating: 1
... that's it? They didn't have a new model in the pipeline for when this one was to sell out? That seems dumb.

It's so they could generate headlines like "Kindle Fire Sells Out"

Amazon will not say how many Kindle Fire tablets it actually sold. I wonder why?

RE: Sooo...
By RamarC on 8/30/2012 9:56:50 PM , Rating: 2
according to most estimates, kindle fire had 22% of the US tablet market share for the past 12 months.

they didn't sell out to make headlines... they planned inventory to make way for the new fire. amazon isn't dumb enough to have unsold stock of superseded products.

RE: Sooo...
By Tony Swash on 8/30/12, Rating: -1
RE: Sooo...
By Tony Swash on 8/31/2012 8:16:01 AM , Rating: 2
As usual Horace Dediu at Asymco does the most rigorous and objective data analysis on Kindle sales.

He thinks 5 million were sold and has this to say

Five million Kindle Fire units becomes the first reliable estimate of Kindle sales (based on Apple, Samsung and Amazon supplied information rather than guesses from analysts.)

So the question now is whether this is consistent with the hypothesis that the Fire is disrupting the tablet business.

Bearing in mind that this 5 million total was reached with prominent placement on and a loss-leading pricing, I would conclude that this is not an auspicious start for a disruptive product.

As I argued nearly a year ago, the business model for the Kindle is limited to the footprint of the Amazon franchise, which is small internationally. Amazon itself implicitly admitted that the product was a US-only phenomenon. Further worry comes from the way the company approached production. It was not planning it as a maximization of reach into the market. What they did was order a batch production and then wait for it to be sold through.

Perhaps Amazon is being patient for growth, but I don’t see a hunger for profit in this strategy. We know that Kindle probably lost money at the price charged. Perhaps it’s on the order of $40 per unit. Five million units would imply a charge against the business of $200 million. Did Amazon earn a profit on content sales of $40 on each of those five million units? The margins on content sold through Amazon are so low that I have a hard time imagining that Fire users are that ravenous in their consumption.

RE: Sooo...
By theapparition on 9/4/2012 1:01:16 PM , Rating: 2
As usual Horace Dediu at Asymco does the most rigorous and objective data analysis on Kindle sales.

Yes, very thorough analysis, yet:

We know that Kindle probably lost money at the price charged. Perhaps it’s on the order of $40 per unit.

So he claims to extrapolate how many Kindles are sold, yet has no idea how much the cost of production is?

iSupply already had a teardown, and when factoring in Amazon's supply chain, concluded that they are making a slim profit. Barne's and Noble offer a similar product, although with better specs also priced close, and B&N is in no position to take a loss on anything.

And most importantly, Google has the Nexus7 priced similarly. A product that, spec wise, is far superior in every way compared to the Fire. And one that Google has admitted to be a break even product (Asus actually profits from the manufacture).

Forgive me if I find your highly reputable and objective source less than credible.

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
Related Articles

Latest Headlines
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki