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Amazon Kindle Fire may sell 5m units in the holiday season

Posted: , by Michael H.

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Amazon Kindle Fire may sell 5m units in the holiday season
There is a reason why Google has pushed its Nexus device releases for November last year and this year. It's the same reason why Apple shifted its iPhone 4S release to October rather than the traditional June/July, and why Amazon is launching its Kindle Fire tablet in November: the holiday season is a time for big business in consumer technology. And, an analyst for JPMorgan thinks Amazon will definitely be making a ton of sales this holidays season.

JPMorgan analyst Douglas Anmuth said in a recent research note that he believes Amazon can sell 5 million Kindle Fire tablets in Q4 this year. Given that Amazon received 95,000 pre-orders in the first 24 hours and 250,000 in the first 5 days, the demand is there and some say may even exceed that for the Apple iPad, possibly because it's hard to argue with a $199 price tag.

For comparison, Apple sold 4.7 million iPads in Q2 2011 with the release of the iPad 2. Of course, the big difference here is that Apple turns a tidy profit on each iPad sold, while Amazon is using its Kindle Fire tablet as a loss-leader in hopes of making up the difference with sales in its various content stores for books, music, video and apps. Still, 5 million units would instantly give the Fire an install base almost equal to the entire Honeycomb tablet install base that has been building all year.

source: Venture Beat

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posted on 24 Oct 2011, 20:15

1. bossmt_2 (Posts: 437; Member since: 13 Oct 2009)


It's so cheap and so well advertised, it makes perfect sense that it will sell. I'ts a risky investment for amazon but could be the best investment in the biz.

posted on 24 Oct 2011, 20:22

2. pkingduck (Posts: 9; Member since: 24 Oct 2011)


Deciding between galaxy s 2, galaxy nexus, and iPhone 4s... What should I go for?

posted on 24 Oct 2011, 22:11 1

4. Joshing4fun (Posts: 1052; Member since: 13 Aug 2010)


Pick the Kindle fire or find an appropriate place to post you're question please.

But heck, for $200 dollars you can't really go wrong. It's the same price as an iPod touch yet so much greater.

posted on 24 Oct 2011, 20:44

3. ardent1 (Posts: 1997; Member since: 16 Apr 2011)


I would like to see what the return rate is. Anyone with basic algebra can calculate the ratio of returns to sales. If you look at the ratings, and make an assumption that a certain percentage of the 1 star returned the product, a lesser amount for 2 stars, etc, respectively, it will give insights on the Fire.

For the new $79 Kindle Wifi, there are currently 425 reviews (as of this post) and 37 reviews (8.7% of total reviews) are 1 star and 20 are 2 stars or 57 reviews are 1 or 2 stars (13.4% of total reviews). That is really a bad product if about 1 in 7 give less than average reviews.

If Amazon does in fact sell 5 million units, I would NOT BE surprised if say 5% return them -- and 5% would be 250,000 units.

The fact Amazon offers so many different Kindles is proof they botched the design and strategy of the next generation Kindles.

posted on 25 Oct 2011, 08:29

5. roldefol (Posts: 3120; Member since: 28 Jan 2011)


The Kindle Fire is attactively priced and I'm sure it will sell millions, but other than the potential for rooting and hacking it - and let's face it, that's not something the average consumer will do - it's a bit crippled. You'll be limited to Amazon's app store, the cloud browser's security concerns me, and the overall experience is Amazon, not Android.

I'm more interested in the Kindle Touch, which is half the price but still has browser capability and pinch to zoom, and the battery life of e-ink is absolutely astounding.

Otherwise, if I'm getting a tablet this size I'd rather wait and see if someone offers the Galaxy Tab 7.7 here at a reasonable price.

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