Kindle Fire Fires Up Competition in Tablet Sector

By Ed Silverstein December 06, 2011

The number of iPads expected to be sold during the current quarter was reduced by a respected industry analyst because of increasing competition from the Kindle Fire tablet and a new version of the iPad likely going on sale next year, according to news reports.

In addition, consumers may opt to hold off buying an iPad during the holiday season until the new version goes on sale, according to news reports.

There are also “potentially lower inventory levels” of the iPad, said Canaccord Genuity analyst Michael Walkley.

Walkley predicts Apple will sell 13 million iPads during the quarter, a 1 million decrease from an earlier estimate, according to a report from The Associated Press.  A key factor is price. The Kindle Fire sells for $199, compared to $499 for the lowest-price iPad.

Walkley also upped the number of iPhones he suspects will be sold during the quarter – because of consumer demand in the United States and in Western Europe. He added 1.5 million iPhones to bring the total to 30.5 million. The iPhone appears to be gaining market share from phones – running Google Android software – in several countries, The AP said. The new iPhone was recently introduced in China, Brazil and Russia, The AP said.

“iPhone sales remained strong in the US, particularly at AT&T and Sprint,” according his comments reported by Forbes.

Citing data from reviews on (as analyzed by CNNMoney,) TMC CEO Rich Tehrani said in a blog post that, “the Kindle Fire has 47 percent five-star reviews and 13.3 percent one-star reviews. This compares to the iPad at 60 percent five-star reviews and 7.2 percent one-star reviews.”

In a related matter, Amazon's Kindle Fire will represent half of the Android tablets purchased in 2012, according to an analysis from Robert Cihra, an analyst at Evercore Partners. “Cihra attributes the Fire's success to its low price,” explained

“Amazon is perceived to be so on the verge of tremendous success in the tablet arena that some pundits have forecast many PC vendors will quit the tablet market, leaving it to Apple and Amazon,” added.

Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

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