Apple’s innovation in the tablet market has fueled the interest of the entire industry towards a business with high revenues potential. Amazon is just one of Apple’s main rivals and despite scoring a great fourth quarter, Kindle Fire sales are still not coming close to iPad’s.
Earlier this month, analysts have estimated that Amazon sold 5 million to 6 million Kindle Fire units during the fourth quarter. Barclays’ analyst Anthony DiClemente released estimates up from 4.5 million units to 5.5 million.
At the same time, Stifel Nicolaus analyst Jordan Rohan told investors that Kindle Fire scored 6 million units sold. As a comparison, Apple announced it sold 15.43 million iPads during the fourth quarter, making the headlines with a raving quarter and an increase in sales of 111 percent.
But, despite having a significant gap to cover before catching up on Apple, Amazon’s fourth quarter sales show that there’s at least one company to have a successful competitor to the iPad. And the trend is confirmed by applications too.
Flurry writes that Kindle Fire drove over 2.5 times more paid downloads to consumers than the Samsung Galaxy Tab. The difference is important when remembering that Samsung already at least twice as many tablets activated as Amazon.
“This shows that for tablets, the Amazon App Store can already deliver more direct revenue to developers than the Android Market”, the firm noted.
And things are only looking better from now on for Amazon. On the overall, Amazon’s tablet is a great user-friendly and affordable gadget. Android based and featuring a 7 inch screen with support for Amazon’s services, the tablet sells for only $199. In comparison, owning an Apple iPad 2 will imply to shell out of your pockets at least $499.
Eweek.com writes that “seizing on this dearth in tablet traffic, Amazon came out of nowhere to offer a $199 tablet that was less than half of existing tablets”.
RBC Capital analysts pointed out earlier this year that Amazon’s Kindle Fire could be bringing the company $136 per device additional revenue from customers purchasing content. The estimate comes from analyst Ross Sandler, who polled 216 Kindle Fire owners to come to the conclusion that Amazon is making more money than what it was originally expected.