Many experts were skeptical about Amazon’s tablet being able to compete against the top dogs before Kindle Fire was announced. By pricing the device aggressively (Amazon is losing over $10 per unit), Amazon has brought forth a gadget that will sell like hotcakes during the holiday shopping season. Cult of Android has managed to get its hands on an internal document that suggests Amazon may be selling as many as 2000 Kindle Fire Units in every hour.
In 5 days, Amazon has managed to sell as many as 250k Kindle Fire units. That is quite impressive for a tablet that is not an iPad killer. The device is so popular that many retailers will rely on it to keep people coming to their stores for more during the holiday shopping season.
iPhone 4S will most likely be the hottest new gadget this quarter. Kindle Fire will be next in line. Amazon will be losing a ton of money on these orders. But the demand for its apps, videos, ebooks, and audio services should offset those losses. With the economy still in recession, Amazon’s aggressive pricing strategy could pay off big.