Is Amazon Kindle Fire In Trouble?
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The Kindle Fire reached impressive heights in a very short period of time. But the demand for it seems to have cooled off in the past couple of months. According to IDC, while iPad has achieved a higher market share in this market, the Kindle Fire has gone from 16.8% market share to only 4% in the first quarter of 2012.
It seems some of the mainstream Android vendors are finally beginning to grasp a fact that Amazon, B&N, and Pandigital figured out early on: Namely, to compete in the media tablet market with Apple, they must offer their products at notably lower price points,
said Tom Mainelli, research director, Mobile Connected Devices at IDC. Amazon has been rumored to be working on a new Kindle Fire with a larger display. The company is not expected to abandon its pricing strategy just yet. It will be interesting how well the Kindle Fire 2 will be received by consumers. Google is also expected to release its own tablet. So Amazon’s tasks is not getting any easier.
Amazon had a lot of success with the Kindle Fire early on. But things have changed dramatically in the past couple of months. Amazon is already losing money on each Kindle Fire sold. Will it get even more aggressive with its pricing strategy for its next tablet? That remains to be seen.
