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Amazon Kindle Fire
(Image Credit: amazon.com)
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It appears
that the release of the Google Nexus 7 tablet has already started to affect the
Amazon Kindle Fire, that is, in terms of the sales projected by an analyst.
Kevin
Kopelman, an analyst from Cowen, reduced the projected revenue of Amazon along
with the sales of the Amazon Kindle and Amazon Kindle Fire since the earlier
projected sales of the devices were not quite realistic. The reduction in the
projection comes prior to the introduction of the Amazon Kindle Fire 2.
The Amazon
Kindle Fire became popular mainly due to its rather cheap price tag of around
$200. The success of the device resulted to the entry of a number of similarly-priced
devices into the market, one of which is the Google Nexus 7 tablet, which has
the same selling price.
In addition
to the Google Nexus 7 tablet, the Amazon Kindle Fire will have to deal with the
upcoming iPad Mini of Apple, which is expected to be released before the end of
the year.
The
projected sales of the Amazon Kindle Fire were reduced by Kopelman from around
14 million to around 12 million for the year. Four million units of the device
were sold by the company last year despite being launched in the later part of
the year. The projected growth of the Amazon Kindle e-reader was also reduced
to around three percent from an initial projected growth of thirty percent
since the projections were not realistic.
The focus on
the Amazon Kindle Fire by the retail giant also affected the sales of the
Amazon Kindle e-reader, which was removed by target from its stores last May.
However Kopelman indicated that sales of the Amazon devices are projected to
reach around 16.3 million for the year, which is higher compared to 15.9
million units last year.
Some
industry watchers had already expected the sales of the Amazon Kindle Fire to
be affected by the release of the Google Nexus 7 tablet, which was supposedly
made to compete directly with the product offering of Amazon.
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