Despite Early Criticism, Amazon May Sell 12 Million Kindle Fire Devices in 2012

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News Posted: Thu, Nov 24 2011 11:05 AM
Amazon is hoping people will once again discover fire -- the Kindle Fire, that is. Perhaps you've heard of it? Of course you have, because the Kindle Fire is Amazon's comparatively low cost ($199) 7-inch slate that, prior to its launch, was garnering all kinds of pre-release hype. Well, now it's here and while initial reviews are a bit of a mixed bag, Amazon could still end up selling a whole bunch of Kindle Fire devices.

Citi analyst Mark Mahaney thinks Amazon will sell 12 million Kindle Fire devices in 2012, according to AllThingsD. If Amazon is able to do that, it will take 15 percent of the tablet market share away from Apple and generate about $3.2 billion in revenue.

"With an aggressive pricing strategy, an unmatched content cross-sell opportunity, a market-smart form factor, and probable product improvements -- Amazon can own a substantial segment of the tablet market," Mahaney told AllThingsD.

Barnes & Noble might have something to say about all that and will be competing for the same subset of tablet buyers with its $249 Nook Tablet. But does the Kindle Fire really have what it takes to scorch the competition? Stay tuned, we just happen to have one on hand and will be posting our review next week.
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AKwyn replied on Thu, Nov 24 2011 5:33 PM

Well it's technically an Android tablet with most of the features as the most expensive tablet and a rich ecosystem... Technically it's going to sell, but I'm more focused on the pricing impact this thing will bring to other tablets...

As I stated before, the reason why tablets aren't in more homes because the cost isn't worth it for what they do; they're not fully fledged computers (except for the Transformer Prime somewhat) and most follow an App store philosophy... For what they do, they're over priced; for what the Kindle Fire does, it's just right...

If this does sell despite mix reviews, It'll finally send the signal to the tablet manufacturers to lower their prices. Let it be clear that we don't want to pay a lot for a tablet.


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rapid1 replied on Thu, Nov 24 2011 10:10 PM

Yes; Taylor your right, in fact when I first saw this, my first thought was a new economic model really. The other Kindles did it to to an extent but they did books and books only. Where these will do any kind of media really as well as where I knew tablets would get to sooner or later.

One of the really interesting things has been the other devices that are similar. The difference in this device and almost everything but first the iPad and second the Nook is that it's original manufacturer really had no route to that media either than through a sub economy.

The iPad has iTunes of course and some things through there but when it comes to everything that media library beyond music is limited, Sony has there's and it has advantages to a point but SONY charges to much I think across all of there media for it, The Nook has Barnes and Noble which has books and print media.

Amazon at there lonesome has everything or avenues to it media wise and does it at a decent price. There even taking the loss ($2-3.00 each I think it is) on the device itself knowing it will be made up in funneled media purchases probably within 15 minutes of an owner turning one on!

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LLeCompte replied on Fri, Nov 25 2011 11:16 AM

Amazon did the right thing: they tested their application store on android, came out with a cloud music locker, and now have streaming videos with a prime account. They have good services to go along with decent hardware. It won't really appeal to the tech nuts, but the average tablet wanting. person will eat it up.

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