About

On this blog we will track down the latest Amazon Kindle news. We will keep you up to date with whats hot in the bestsellers section, including books, ebooks and blogs... and we will also bring you great Kindle3 tips and tricks along with reviews for the latest KindleDX accessories.

Recent Comments

September 2016
M T W T F S S
« Oct    
 1234
567891011
12131415161718
19202122232425
2627282930  

Kindle Sales Experience Q1 Slump…But Not Really?

We are well aware that Amazon has come to completely dominate the Android tablet market with their Kindle Fire and that this has been accomplished in an amazingly short amount of time.  Unfortunately for Amazon, market research firm IDC has released a report of the Android tablet market shrinking at a noticeably higher rate than the tablet market in general.  This could prove problematic as a trend, but the situation may be even more complicated than that.

IDC’s report indicates a bit of a slump as we come into 2012.  Total shipments for tablets are coming in below expectations, especially compared to the previous quarter’s record breaking sales numbers.  Apple’s new shipments are up to 68% of tablet sales compared to just 54% at the end of 2011, indicating that Android has lost a bit of traction despite the lack of reason to get excited about the iPad 3.  Much of this, according to IDC, may be attributed to Apple’s keeping the iPad 2 around as a cheaper alternative to their newest offerings.

Where many are taking this as a death sentence for the Kindle Fire and Amazon’s tablet prospects more generally, there have also been issues raised with IDC’s research methods.  Namely, they are making their determinations based off of total shipments from factories to warehouses and stores.  This is itself a problematic point to raise since it calls into question IDC’s analysis of Q4 2011, but does make sense.  There were obviously going to be plenty of retailers that still has stock left over from the holiday season, so maybe it would be smart to account for that.  Even so, sales almost certainly dipped compared to the iPad.

Looking forward to the year ahead, this doesn’t start Amazon off on a high note.  The Kindle Fire was just their first generation product, however, and we are expecting the next generation in a matter of months.  It will likely be larger, or at least have the option of being larger, and will definitely be more powerful.  Pricing can be expected to remain highly competitive.  This is certain to lead to a resurgent interest in the Android segment of the market even leaving aside such strong offerings as the new Samsung Galaxy Tab 2 and Google’s anticipated budget tablet.

Larger screen or not, it is hard to say in advance if Amazon has a Kindle Fire 2 vs iPad 3 comparison in mind.  It is even harder to tell if this would be a smart move at this time.  Both Android and iOS sales may be hit hard toward the end of this year with the introduction of Windows 8 tablets to the competition.  Since these will certainly be all-purpose tablets along the lines of the iPad, it might be more effective for Amazon to continue building the Kindle Fire’s niche as a consumption device that serves specific needs at a lower price than the alternatives.

The bottom line is that right this minute it is doubtful Amazon has anything to be worried about with regard to the Kindle Fire.  Things are going well even if there’s a bit of a slump right now.  The big challenge will come later this year when Android is hit from both sides by iOS and Windows 8 and consumers are left to decide which will be their long-term choice.

First Quarter Analysis Puts Barnes & Noble Nook Line Ahead of Amazon Kindle

A recent report from the International Data Corporation has provided an analysis of the Tablet PC and eReader markets for the first quarter of 2011.  Nooks, Kindles, iPads, and their respective markets in general are doing quite well, with eReader growth at 105% over the past year and tablets not doing too bad either.  Although demand did not grow quite as much as expected, for a variety of reasons, things are improving.

Right now the Barnes & Noble Nook product line is on top in terms of worldwide sales for the first time, beating out the Kindle a bit.  IDC attributes this in part to the introduction of the popular Nook Color, for which this was the first full quarter of sales.  While many have leaped at the chance to interpret this as an indication that the Nook Color is single-handedly outselling the Kindle, no indication of such is made in the article.  Instead, it seems likely that the Barnes & Noble Nook line’s incorporation of both a dedicated eReader and a budget Tablet PC has proven a smart move, especially with their managing to classify their tablet as a primarily reading focused device.  This does not necessarily mean that the Kindle is doing poorly in any way, but it does indicate fairly well that the expansion of the Kindle line to incorporate a variety of Tablets will come at a great time for Amazon.  The eReader market is expected to continue to expand, and IDC has increased their number of expected unit sales for the year.  Current forecasts call for 16.2 eReaders shipped worldwide in 2011.

On the tablet front, the iPad and newly released iPad 2 are continuing to dominate the market.  Though sales fell short of expectations in the post-holiday season, due to both current economic conditions and certain supply chain issues, there was still noticeable expansion and the rest of the year is looking strong.  Worst off have been the iPad’s competitors who choose to concentrate on distribution through telecommunication venues.  Due perhaps to customer reluctance to get locked into a monthly fee with their purchases, the demand in these areas is growing comparatively slowly.

Amazon’s anticipated third quarter tablet release is definitely looking like it has a chance at making a major impact on the Tablet PC space.  Due to firmly established distribution channels and an existing support structure, the device or devices can expect to be better received than most.  Should Amazon meet their expected sales numbers, as estimated from reports of supply orders made in anticipation of the upcoming release, they could jump to a 5% share of the Tablet market within months of release.

Given the success of the Nook line in the eReader market in a period when they were offering a fairly outdated eReader and an underpowered Tablet, it can be assumed that the combination of the current generation Kindle and the upcoming high-powered Kindle Tablet will provide Amazon with just the versatility needed to get firmly in place as a hardware provider in the months ahead.