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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...
01-03-2012, 12:11 PM #1
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 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
01-03-2012, 12:14 PM #2
Good, maybe Apple will consider lowering their price to compete with other tablets
01-03-2012, 12:20 PM #3
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
01-03-2012, 12:21 PM #4
01-03-2012, 12:29 PM #5
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.
Last edited by luvmytj; 01-03-2012 at 12:34 PM.
01-03-2012, 12:33 PM #6
01-03-2012, 12:35 PM #7
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.
01-03-2012, 12:36 PM #8
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.
01-03-2012, 12:51 PM #9
01-03-2012, 12:58 PM #10
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.
01-03-2012, 01:07 PM #11
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
01-03-2012, 01:11 PM #12
Regardless what people decide to get competition is always good for us consumers.
01-03-2012, 01:26 PM #13
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.
01-03-2012, 01:28 PM #14
01-03-2012, 01:49 PM #15
01-03-2012, 02:23 PM #16
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.
Last edited by SepticTank; 01-03-2012 at 02:25 PM.
01-03-2012, 02:41 PM #17
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.
01-03-2012, 02:49 PM #18
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.| Desktop: Windows 8 | Phone: HTC One | Tablet: iPad Air 32GB WiFi+LTE | Laptop: HP Envy
Newest Device: iPad Air WiFi+LTE 32GB (Silver) |
01-03-2012, 02:59 PM #19
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,
01-03-2012, 03:02 PM #20
Apple will have to do something, 1 to 2 million is just start. Anyhow competition is good for comsumer, more choice for everyone.