Apple’s iPad has long dominated the tablet market. Attempts by other companies to offer tablets that compete with the iPad, such as Tegra based tablets from ASUS, have yielded relatively poor results. However, it seems Amazon has found the formula to tablet success in the form of value for money. The Kindle Fire looks like a great success coming in at only $199 and with a huge range of content available for it from Amazon’s e-store. Equipped with a 7-inch 1024 x 600 touchscreen and a dual core 1GHz processor the Kindle Fire certainly packs a punch for its price. And if that wasn’t enough next year here is a scheduled price drop down to $179.
Citi analyst Mark Hahaney states he thinks Amazon will sell 12 million Kindle Fire units this year at the current price of $199. 12 million units will roughly correspond to about 15% of the tablet market which is a sizeable chunk given the short period of time Amazon have been in the tablet market. He went on to predict that next year when the price does come to $179 Amazon might manage to shift 20 million units. Even though there is an operating loss on each item revenue from content sales from Amazon’s vast library is expect to recoup the losses and bring the Kindle Fire’s into profit.
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