Amazon’s Kindle Fire has lost much of its shine in the past few months and according to the shipment figures, their sales have dropped immensely from 4.8 million during the 4thquarter of 2011 to just 0.7 million in the beginning of the first quarter of 2012. The figures show that the Kindle Fire was a temporary trend and many analysts had already foreseen that shipments will get lower during the first quarter.
Bob O’Donnell, the Vice President of IDC, made the analysis that the tablet market has been very seasonal. During the holiday season, buying a Kindle at $199 was nothing more than an impulse. However, this impulse buying cannot be observed during this year’s first quarter.
Indeed the slump can be attributed to seasonal impulses, yet it is more likely that Kindle Fire will not recover from this easily, because Google has announced the launch of its Nexus, which is to hit the market by the end of June. The interesting combating feature is that Google Nexus has been expected to be released at the same price of $199. Equipped with this incredible price and an Android 4 ICS along with Tegra 3 Heart, Google Nexus is bound to give more bang to the buck than Amazon Kindle. Further, Google Nexus tends to play its game better than Kindle by being a generic Android tablet, while Kindle is holding on strictly to the Amazon market and restricting the readers to use its products.
Target is the third largest retailer in US having 1,800 stores around the country; the company has recently announced that it will stop selling the Kindle through its retail stores, clearly aggravating the situation for Amazon even further. They stated that, highlighting the fact that customers overcrowd the retailer stores to check the Kindle devices in person and then ended up ordering them through the Amazon online store, to get them shipped directly to their homes.
Amazon are not unaware of these challenges and threats and they know how to tackle these facets pretty well. It has been hinted that Amazon are going to rock the market with their next venture as they have been developing the next generation of Kindle Fire, along with its bigger version with a 10 inch screen. For this next venture, Amazon will get a chance to experiment more with this new generation, in order to overshadow competitors or simply reduce the price of the tablet to recover the costs from the eco-system.
But until all this happens, Kindle Fire has to deal with a major threat to its existence, which comes with the launch of Google Nexus. The Goggle tablet will be unveiled in the next few weeks and it is more likely that Google Nexus will win all along the way, no matter how much Amazon tries to lower its price to attract the customers.