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  • Apple Believed to Have Lost 1 to 2 Million Holiday iPad Sales to Kindle Fire


    It's a reality - not a mere rumor - that Amazon's Kindle Fire tablet is taking a sizable chunk out of Apple's still-gargantuan share of the tablet market. And according to the latest insight from Wall Street watchers and industry analysts, Amazon's hot new device may have cost Apple a pretty penny over the holidays.

    Notwithstanding the foregone conclusion that Apple will all but certainly report record sales for the fourth quarter of 2011, investment research firm Morgan Keenan speculated Tuesday that the Kindle Fire's popularity may have resulted in between 1 and 2 million fewer iPad sales for Apple over the 2011 holiday shopping season.

    "Based on data from Amazon, we believe the Amazon Fire likely sold 4-5 million units this holiday season," Morgan Keenan analyst Travis McCourt said in a note to investors Tuesday, "which probably means maybe 1-2 million cannibalized iPad sales at most."

    McCourt still believes that the iPad will account for 21.3% of all Apple revenue in the December quarter. If so, that's a substantial improvement over the iPad's generation of 17.2 percent of Apple's revenue during the same quarter of 2010. But before the Amazon Kindle Fire came along, the iPad was on pace to score a bigger piece of the overall tablet pie for Apple. And the Kindle Fire is being blamed for the major reason iPad sales didn't wholly dominate the holiday shopping tablet frenzy.

    Source: Morgan Keenan
    This article was originally published in forum thread: Apple Believed to Have Lost 1 to 2 Million Holiday iPad Sales to Kindle Fire started by Michael Essany View original post
    Comments 43 Comments
    1. Broomhead's Avatar
      Broomhead -
      Good, maybe Apple will consider lowering their price to compete with other tablets
    1. redstar299's Avatar
      redstar299 -
      Mercedes doesn't lower their price to compete with Kia. It's a better product which offers a lot more. It should be higher priced. That being said a giant 7.5 inch iPod Touch would be all then need to extinguish the Kindle Fire
    1. hogcia's Avatar
      hogcia -
      Quote Originally Posted by Broomhead View Post
      Good, maybe Apple will consider lowering their price to compete with other tablets
      Apple will never lower price, why should they? The iPad still blows every other tablet out of the water.
    1. luvmytj's Avatar
      luvmytj -
      In my opinion, the sales of the Kindle Fire have been driven purely by price point. Many consumers who bought the Kindle have no idea of the differences between the Fire & the iPad, they just know it cost half as much and it has colorful display. Must be the same for less... right?
      Redstar made an analogy about Mercedes Benz & Kia which I agree with. Once I owned my first Mercedes I understood why people pay the higher price they command. This applies to Apple products also.
    1. Nickaroni22's Avatar
      Nickaroni22 -
      Quote Originally Posted by redstar299 View Post
      Mercedes doesn't lower their price to compete with Kia. It's a better product which offers a lot more. It should be higher priced. That being said a giant 7.5 inch iPod Touch would be all then need to extinguish the Kindle Fire
      +1
    1. fleurya's Avatar
      fleurya -
      Nice pic. Looks like the iPad is in the background looking away in shame, maybe crying.

      But seriously, the phrase has been thrown around so much that it's lost all meaning, but the sales numbers do prove that we finally have a real iPad competitor. Which is a good thing, but the iPad will still be a runaway success for a while. The thing that really kicked off Android sales was carrier-subsidized phones with crazy BOGO and penny phones deals. They can't really pull the same stunt with the tablets. Also, Apple's not fighting a carrier limitation this time either.

      I still think Android will get a good foothold eventually, but it's going to take a long time. The Fire is so modded I don't really consider it a proper Android tablet, but it's popularity and ability to use android apps should eventually have a ripple effect on proper Android tablets.
    1. JedixJarf's Avatar
      JedixJarf -
      The iPad should def not be priced to compete with the fire, it has no reason to. I bought a fire for my wife simply because it was $200 and she doesn't need all the features of a 10" ipad.
    1. J.Juice's Avatar
      J.Juice -
      EVERYONE ON DIS TOPIC WATCH DIS MUST SEE TO BELIEVE UR OPINIONS.!.!.

      http://www.youtube.com/watch?v=ryat0...e_gdata_player
    1. hingeinc's Avatar
      hingeinc -
      Apple is lowering the price of the iPad 2 in February to $249.99 for the 16gb.
      Also will announce the iPad 3.
      I work at apple genius bar and we got the memo last week.
    1. iRepairIndy's Avatar
      iRepairIndy -
      Yea the iPad 2 does way more than the Fire. But the Fire is targeted for a certain consumer market. There is no need for Apple to lower prices.. but they might come out with a smaller more affordable iPad
    1. mmaboi21's Avatar
      mmaboi21 -
      Regardless what people decide to get competition is always good for us consumers.
    1. GmAz's Avatar
      GmAz -
      If you're looking to do Facebook and surf the web on a tablet, the iPad isn't worth it. Its too expensive pure and simple.
    1. luvmytj's Avatar
      luvmytj -
      Quote Originally Posted by hingeinc View Post
      Apple is lowering the price of the iPad 2 in February to $249.99 for the 16gb.
      Also will announce the iPad 3.
      I work at apple genius bar and we got the memo last week.
      Call me crazy, but I have a hard time believing this post. Yes the iPad 3 is around the corner, that I agree with, but everything else...
    1. Norb's Avatar
      Norb -
      Quote Originally Posted by luvmytj View Post
      Call me crazy, but I have a hard time believing this post. Yes the iPad 3 is around the corner, that I agree with, but everything else...
      You're not the only one...
    1. SepticTank's Avatar
      SepticTank -
      Who really cares. Apple and Amazon provide 2 different products. iPad for the "advanced" and Kindle Fire for people which don't need a tablet to do a billion things, when only a handful are needed and practical.

      I have an iPhone and I now have a Fire and I love the Fire. I already have a laptop and iPad make zero sense to me. I'm not even remotely interested in an iPad and never will be.

      A Fire is great since its a bridge between a smart phone and a laptop. And it's actually quite intuitive, fast, easy to use and the content is amazing and then toss Prime membership in-and it's clearly easy to see why so many bought one. The reviews are just as good from Fire owners as with iPad owners. And Apple shouldn't lower the costs for their iPads since again-two different things.

      Just my opinion and I'm not out to stir the pot.
    1. GrandMasterB's Avatar
      GrandMasterB -
      I bought 3 Kindle Fire's for Christmas gifts for my wife and kids this year. I figured I could be a Christmas hero and buy Kindle Fires for everybody or be that selfish guy and blow it all on a single iPad for myself. Easy decision....price matters and the iPad's price is bloated and its showing. They will have to come down on the price to compete and that's great for us as consumers. Healthy competition and choice is a good thing.
    1. jOnGarrett's Avatar
      jOnGarrett -
      Quote Originally Posted by hogcia View Post
      Apple will never lower price, why should they? The iPad still blows every other tablet out of the water.
      you're so wrong on BOTH points. apple WILL lower the price of the iPad and you would know this if you got your information from various sources. and secondly the iPad 2 does NOT blow every other tablet out of the water unless you're' talking about sales--which in the end does nothing to benefit you, the end user.

      here's something for you to gnaw on. Apple To Target Mid-Range Segment With A New $299 iPad [REPORT] | Redmond Pie

      the bottom line is that apple has lost out big time to the success of Android and nowt that Android tablets have entered the market apple will definitely loose sales. they have to do something.
    1. saunupe1911's Avatar
      saunupe1911 -
      Actually picked a Nook tablet over both of them. Flash is a big deal for me since I stream a lot of videos from various sites and I can't stand the mobile versions. Second, the I absolutely need the ability to expand my memory, and finally its made very well. There's very little lag within the input or watching videos, but it's still not as smooth as the ipad. Great deal fir $250,
    1. monkeydance's Avatar
      monkeydance -
      Apple will have to do something, 1 to 2 million is just start. Anyhow competition is good for comsumer, more choice for everyone.
    1. 1shuttle1's Avatar
      1shuttle1 -
      I buy mostly Apple products except for work which in my field (medical equipment sales is still all windows). With that being said I got my wife the Kindle Fire for Christmas. I expected it to be 40% the experience of the iPad since that was the price difference for my iPad. I have to say the Fire is far better then that. I actually played with it for a few days and loved it. It was pretty snappy loading Apps and the Amazon cloud works fine. Uploaded iTunes music to it very easily. For all the big deal Apple is making about the cloud the Amazon cloud worked flawlessly for me.

      Not gonna get rid of my Apple products any time soon. But what you have to ask yourself is are you getting 2 to 3 times a better experience for the price you are paying. And for some this will be the camera and FaceTime and a few other features that I just don't use.

      Anyway this will make Apple step it up on the iPad 3 or even the IOS 5.XX version of software. Quite honestly if the iPad had never crossed my path, I would not be unhappy with the Fire.