The Kindle Fire is a very decent Android tablet that has captured the attention of plenty of folks already. Amazon has sold millions of Kindle Fire units already. That should be great news for the company. But it does seem that the Kindle Fire has started cannibalizing e-reader sales. According to Digitimes, global shipments of e-book readers is to slip to 2 million units in the first quarter of 2012, down from 9m units shipped in the previous quarter.
Digitimes Research suggests that the success of the Kindle Fire may have affected other Kindle e-readers. Tablets are not as great in displaying e-books as e-readers such as the Kindle Touch. At the same time, they handle colored books better and offer many more features. The e-reader market is still expected to grow in the upcoming years. Amazon is rumored to be working on color e-paper devices. It will be interesting to see how those will perform against the next generation of tablets.