Kindle Fire helps Amazon report 34% revenue increase: iPad threatened

Kindle Fire has helped Amazon report 34% revenue increase in the last quarter. Meanwhile Apple’s iPad seems to be threatened by Kindle Fire as it grabs around 30 percent US tablet market share

Amazon’s Kindle Fire is eating-up other Android tablets. Just a few months old, the Kindle Fire is already the largest selling Android tablet and commands as much as more than fifty percent of the Android’s tablet market-share.

The same tablet was being laughed at before its launch as its detractors said this small 7 inch tablet with not many great features would not be able to attract consumers. For them 10 inch tablets with great display and top specs were more important than a sub $200 tablet.

But Kindle Fire has proved its detractors wrong. The small tablet has risen to give a tough fight not just to Android tablets, but is already posing a challenge to Apple’s iPad tablets. There are indications that Apple is planning to introduce a 7 inch tablet with $300 price tag to take on Kindle Fire.

Latest data suggest Kindle Fire has grabbed as much as around 55 percent of Android tablet market. This was till February this year. In the last two months, its share must have gone up by another few notches. But that would be clear when Amazon releases data for the next quarter. 55 percent market share for Kindle Fire means that Amazon’s little tablet has almost doubled its market share in just two months.

The spiraling Kindle Fire sales gave Amazon a better than expected January-March quarter –which helped drive its stock up 13 percent. Though the company’s net income as a whole declined to $130 million, or 28 cents per share, from $201 million but that was more because the company was investing heavily in diverse sectors.

Kindle Fire seems to be catching up with Apple’s iPad rather very fast. It has already grabbed as much as 30 percent tablet market in the US and its share is going up and up. Apple CEO Tim Cook had laughed at the idea of such a cheap tablet. At the time of Kindle Fire’s launch Cook had said, “A cheap prod­uct might sell some units…But then get it home and use it and the joy is gone. And the joy is gone ev­ery day that they use it and they wind up not us­ing it anymore”. Now he and his colleagues need to review their strategy of laughing at a ‘cheap’ product.

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Posted by admin on April 28, 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry