Amazon Loses Momentum as Sales of Kindle Fire Fade in 2012

  • At the end of 2011, Amazon sold 4.8 million Kindle Fires, showing it was the “right product at the right price at the right time,” ReadWriteWeb suggests. But the online retailer’s luck stopped there.
  • “According to IDC, Amazon’s share dropped from nearly 17 percent of the tablet market to 4 percent, with fewer than 700,000 units sold compared to Apple’s 11.8 million,” explains ReadWriteWeb.
  • While Amazon still beats out Barnes & Noble’s Nook by a fair margin, it now sits in third place, lagging behind Samsung Android tablets and Apple’s iPads.
  • The first quarter of 2012 was good to Apple, which increased its market share to 68 percent (up from 54.7 percent in Q4) with the sale of its new iPad and continued success with cheaper versions of older models.
  • Overall however, the tablet market has slowed quite a bit. “IDC had predicted overall tablet sales to be 1.2 million units higher than they were this quarter, with the shortfall mostly attributed to Amazon’s slip,” the article states. “Tablet sales have grown 120 percent from last year, but were still lower than IDC’s predictions. Whether tablet sales continue to slow in Q4 will be interesting to see.”
  • IDC predicts Amazon will try to come back with a larger-screened model. Android continues to stagnate at about one-third of the market, unable to reproduce the same adoption it has secured in the smartphone sphere.

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