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Amazon estimated with 100,000 pre-orders for Kindle Fire

updated 06:40 am EDT, Tue October 4, 2011

Amazon on fire with Kindle Android tablet

Amazon is unofficially estimated by eMailDataSource to have already taken over 100,000 pre-orders for its Kindle Fire. The seven-inch, heavily customized, Android-based tablet went up for pre-order on Monday and reached that figure by the end of its first day on sale. Compared to other tablet launches the figure is significant although it still trails the original iPad, which took 300,000 orders on its first day on sale for pre-order.

The Kindle Fire, announced last week, is considered by many to be the first serious challenger to the dominance of Apple's iPad. Although lacking in several key features to keep its cost down, including cameras, the device is predicted to be a hit as it ties in closely with Amazon's extensive rich media content delivery platform. Its entry price of $199 also makes it an attractive alternative for many people who can't, or don't want to, stretch their budget to reach the over $500 asking price for an iPad.

Amazon has been able to accomplish its low price, where others to date haven't, because it is gambling that it can take a loss up front though make up for this by selling content to Kindle Fire users. It is estimated that Amazon could be losing anywhere between $10 and $50 for each Kindle Fire it sells based on the raw cost of each component.

However, the strategy may not necessarily work as numerous studies have shown that Android users are less likely that iOS users to purchase content online. If Kindle Fire buyers are simply interested in a cheap Android tablet for surfing the web and checking their e-mail, while downloading only free apps and installing their own content on the device, Amazon may find it difficult to turn a profit on the device.




By Electronista Staff
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  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    0

    Considering the iPad cost

    twice as much as the Kindle Fire, I'd say the Amazon has a bit of way to go before declaring itself the next Apple. Remember, Amazon also needs to sustain sales for at least a few months to get to a million Fires being sold. One thing for certain, if you're an Amazon Prime user or intend to be one, then the Kindle is certainly worth looking into. I'd think Amazon Prime is a better lure than the Kindle Fire itself.

  1. facebook_Robert

    Via Facebook

    Joined: Oct 2011

    -2

    That puts Amazon, way, way ahead

    Apple announced first day sales of the original iPad at 300,000 - that included pre-orders that had been collected over 23 day period, and initial shipments to channel partners, along with the actual first day sales.

    You are comparing that to 100,000 pre-orders on day one - that's not a fair comparision, you'd have to wait until November 15th - the first day of actual sales on the Kindle Fire, and do the same as Apple did - count all pre-orders, shipments to channel partners, and November 15ths total sales.

    I think its clear the Kindle Fire will be ahead of the original iPad - not that I am suggesting the comparison is important.

    I just thought I'd correct your propaganda, that's all.

  1. SJBMusic

    Fresh-Faced Recruit

    Joined: Oct 2011

    0

    comment title

    My prediction (worth exactly what you pay for it) is that the Kindle Fire will be a distant-solid #2 pad in the market - distant from the iPad, but solidly ahead of #3.

    It should be a good little tablet, and a requisite upgrade for old Kindle owners who haven't moved to the iPad. But here's a convo I heard about it on the radio - "The main thing I know people do with their phones and iPads is take pictures of stuff. My boss takes pictures of food when he goes out to eat. If you can do that for only $199 now, that sounds like a good thing."

    Of course, you know the problem with that scenario - no camera on the Fire. People will see those limitations. People will have to evaluate the differences. Many will be okay with their phone's camera and a pad without. I still think it will clearly fall out as a good, clear #2 device, and a great loss leader product for Amazon.

  1. facebook_BF

    Via Facebook

    Joined: Oct 2011

    0

    babyfacemagee

    According to reports this morning the Kindle Fire has booked about 250,000 pre-orders in the 5 days since its announcement with 95,000 being the first day and 37,500 on average the 4 days after. According to www.kindlefireforums.com if that rate continues Amazon will have pre-sold about 1.75 million of the devices by the first day it ships on November 15th.

  1. facebook_Robert

    Via Facebook

    Joined: Oct 2011

    0

    No loss leader

    There is a great debate whether Amazon is losing money at $199 or not. The fact is, analysts don't know. But historically Amazon does not take a loss on devices, and my feeling here is they have razor thin margins on the Kindle, but they have decided not to take a loss. It's a 7" tablet with 8gb of local storage, with no camera, or bluetooth, etc. for a reason - to get the cost down.

    Look, we know that an iPhone does not cost $199 to make - the carriers take a loss on the sale with the intention to make it up later on your monthly fee's.

    The iPhone fits the definition of the a great loss leader - the Kindle Fire - probably not.

    Pot, meet Kettle.

    I like Apple's business model - it's great. Amazon should do well with the Kindle too.

    No way it outsells the iPad in 2011 - Amazon doesn't have that type of manufacturing capability, and they take forever to do their worldwide rollouts, and they, frankly, aren't quite as big a name in some countries as Apple.

    but they could overtake Apple in 2013 or so...2012 - eh...maybe. They'd really have to solve a lot of problems, quickly, and I just doubt they will do it.

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