Good to see and hear such news.. Innovation after innovation and finally things are going well for tech companies.. We seriously need good competitor for iPad.. Whatever we have heard so far, Kindle Fire is going to be a formidable competitor for iPad..
This also means that Amazon is selling around 100-150 mil per week in Kindle sales itself.. at the same time.. it also means that they are taking 20-30 mil of loss every week on Kindle sales.. which they hopefully would recoup in content/media sales.. As long as people read it and use it for good.. it is good for everyone..
I hope that Apple will also follow amazon and reduce entry level iPad's price as well.. Apple gets credit for creating this market segment and hopefully that combined with their ulitmate user experience and intuitive desigin will continue to keep them number one in this field..
Cheers!!!
Amazon reports shoppers snapping up tablets, e-readers
By Danielle Kucera
Bloomberg News
Amazon.com, the world’s largest online retailer, said customers have bought about 1 million Kindle e-book readers and tablets in each of the past three weeks, the most detailed sales numbers the company has released. The Kindle Fire tablet, which sells for $199, has been the best-selling product on Amazon.com since its introduction 11 weeks ago, the Seattle- based company said in a statement Thursday. Kindle Fire sales have risen week over week for the past three weeks, Amazon said. The Kindle Fire, which has a 7-inch display and runs on Google’s Android operating system, costs less than half the price of Apple’s least-expensive iPad tablet. Amazon CEO Jeff Bezos said in October that the company may post a loss in the fourth quarter as it ramps up spending. Operating margin may narrow to 0.8 percent this quarter from 3.66 percent in the year-earlier period, according to the average analyst estimate compiled by Bloomberg.
“They have not talked about numbers at all, so it’s a big deal that they for some reason think they need to disclose metrics now,” said Brian Blair, an analyst at Wedge Partners. “It’s a part of their strategy to show the strength of it against Apple — a way to say, ‘We’re a player, and we’re going to start letting you know.’ ” While IHS says Amazon is losing money on every $199 tablet it sells, Susquehanna Financial Group said Nov. 15 that each machine may generate a total of $384 in revenue for the company, including money spent on books, videos and other content.
Estimates for sales have varied. Amazon has raised production of the tablet two or three times since its introduction and will probably sell 5 million to 6 million Kindle Fires by the end of the year, Blair said.
Anthony DiClemente, an analyst at Barclays, said the company may sell 4.5 million tablets in the fourth quarter, while Colin Sebastian, an analyst at Robert W. Baird, estimates Amazon will sell 5 million to 6 million units of the device.
After hitting store shelves Nov. 14, the Kindle Fire has surpassed more established tablets from Samsung and Barnes & Noble in challenging Apple, which will ship an estimated 18.6 million iPads in the fourth quarter, IHS said.
That would give Apple a market share of 66 percent, compared with an estimated 14 percent for Amazon, IHS said.
“They’re getting traction by selling no-profit hardware,” said Colin Gillis, an analyst at BGC Partners. “Bad for margins, but it is giving them some share.”
This also means that Amazon is selling around 100-150 mil per week in Kindle sales itself.. at the same time.. it also means that they are taking 20-30 mil of loss every week on Kindle sales.. which they hopefully would recoup in content/media sales.. As long as people read it and use it for good.. it is good for everyone..
I hope that Apple will also follow amazon and reduce entry level iPad's price as well.. Apple gets credit for creating this market segment and hopefully that combined with their ulitmate user experience and intuitive desigin will continue to keep them number one in this field..
Cheers!!!
Amazon reports shoppers snapping up tablets, e-readers
By Danielle Kucera
Bloomberg News
Amazon.com, the world’s largest online retailer, said customers have bought about 1 million Kindle e-book readers and tablets in each of the past three weeks, the most detailed sales numbers the company has released. The Kindle Fire tablet, which sells for $199, has been the best-selling product on Amazon.com since its introduction 11 weeks ago, the Seattle- based company said in a statement Thursday. Kindle Fire sales have risen week over week for the past three weeks, Amazon said. The Kindle Fire, which has a 7-inch display and runs on Google’s Android operating system, costs less than half the price of Apple’s least-expensive iPad tablet. Amazon CEO Jeff Bezos said in October that the company may post a loss in the fourth quarter as it ramps up spending. Operating margin may narrow to 0.8 percent this quarter from 3.66 percent in the year-earlier period, according to the average analyst estimate compiled by Bloomberg.
“They have not talked about numbers at all, so it’s a big deal that they for some reason think they need to disclose metrics now,” said Brian Blair, an analyst at Wedge Partners. “It’s a part of their strategy to show the strength of it against Apple — a way to say, ‘We’re a player, and we’re going to start letting you know.’ ” While IHS says Amazon is losing money on every $199 tablet it sells, Susquehanna Financial Group said Nov. 15 that each machine may generate a total of $384 in revenue for the company, including money spent on books, videos and other content.
Estimates for sales have varied. Amazon has raised production of the tablet two or three times since its introduction and will probably sell 5 million to 6 million Kindle Fires by the end of the year, Blair said.
Anthony DiClemente, an analyst at Barclays, said the company may sell 4.5 million tablets in the fourth quarter, while Colin Sebastian, an analyst at Robert W. Baird, estimates Amazon will sell 5 million to 6 million units of the device.
After hitting store shelves Nov. 14, the Kindle Fire has surpassed more established tablets from Samsung and Barnes & Noble in challenging Apple, which will ship an estimated 18.6 million iPads in the fourth quarter, IHS said.
That would give Apple a market share of 66 percent, compared with an estimated 14 percent for Amazon, IHS said.
“They’re getting traction by selling no-profit hardware,” said Colin Gillis, an analyst at BGC Partners. “Bad for margins, but it is giving them some share.”
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