Amazon Kindle Fire Shipments See Massive Drop

Posted May 10, 2012

The Amazon Kindle Fire has been looked at as being one of the biggest rivals to the Apple iPad. However the Fire did not have much of an impact on Apple’s iPad sales for the March quarter. Apple CFO Peter Oppenheimer said that Apple is selling new iPads “as fast as we can make them.” Global shipments of the Fire has dropped from 4.8 million units in the fourth quarter of 2011 to less than 750,000 last quarter.

Analysts believe that the drop in worldwide market share from 16.8% to 4% could be because customers are postponing their purchases for a new version of the device or because the Fire was a well-executed holiday play, but the novelty has worn off. Another reason why the Fire has been dropping in sales is because the iPad 2 is being sold at a lower price. The iPad 2 is being sold for $399. Apple CEO Tim Cook said that the iPad 2’s new lower price point has unlocked demand among price sensitive customers.

There is also a believe that the number of units shipped is not the same as the units being sold. There may have been a drop-off in shipments because of the large inventory build up in the first few months that the device has been in the market.