Amazon To Fire Up Tablet Market
Despite middling reviews, analysts believe that Amazon’s Kindle Fire will quickly take marketshare from iPad-maker Apple. Citi analyst Mark Mahaney, for one, estimates that Amazon will sell 12 million Fires in 2012, thus wresting a 15% share of the tablet market from Apple. That’s “enough to claim a decent chunk of the tablet market,” according to AllThingsD.
What’s more, If Mahaney’s right, “the Fire will end up generating about $3.2 billion in revenue, or about 5 percent of Amazon’s total,” AllThingsD adds. “The path is clear,” says Mahaney. “With an aggressive pricing strategy, an unmatched content cross-sell opportunity, a market-smart form factor, and probable product improvements -- Amazon can own a substantial segment of the Tablet market.”
Raising its assessment of Amazon’s debut tablet, meanwhile, J.P. Morgan recently predicted that the ecommerce giant would sell 4.5 to 5 million Kindle Fires in the fourth quarter of the year. (Apple sold 11.1 million iPads during the most recent quarter ending Sept. 24.) J.P. Morgan Web analyst Douglas Anmuth, who covers Amazon, said be expected 5 million units to move in the fourth quarter, along with multiple models in 2012, including 7 and 10-inch units and models with 3G radios in addition to Wi-Fi.