• Apple Already Losing Business to Amazon's Kindle Fire

    by
    Michael Essany
    Published on 2011-11-09 11:10 PM
    17 Comments Comments


    Although Amazon's forthcoming Kindle Fire doesn't stand poised to knock Apple off of the tablet block, new data indicates that Apple, in fact, is already losing business to Amazon in the race for tablet dominance.

    A joint survey sponsored by ChangeWave and RBC Capital Markets shows that roughly one-quarter (26%) of Kindle Fire buyers are delaying their former intentions of buying an iPad - at least for now. Simply put, for consumers with limited cash to dish out, the Kindle Fire is beating the iPad in some circles.

    The survey results are based on the comments and feedback from a modest-sized pool of 2,600 respondents. The survey was conducted during the month of October. If the information contained within the survey is, indeed, reflective of the general population, that bodes well for Amazon. As the survey clearly shows that demand for the Kindle Fire, which launches November 15, tops that of the iPad 2.

    Five percent of respondents revealed that they have already preordered the Kindle Fire. Only four percent of respondents similarly revealed a strong inclination to purchase an iPad 2.

    In the end, of course, sales data will tell the whole story. And with some analysts predicting that upwards of 50 million iPad units will be sold in Apple's 2012 fiscal year, Amazon will need more than just hype to truly compete with its biggest rival on the tablet stage.

    Source: CNET
    This article was originally published in forum thread: Apple Already Losing Business to Amazon's Kindle Fire started by Michael Essany View original post
    1. Categories:
    2. iPad,
    3. Apple
    Comments 17 Comments
    1. TooSlo's Avatar
      TooSlo - 2011-11-09, 11:23 PM
      I know there's a huge difference between plopping down $200 on a toy to tinker with, and $500 for an entry level iPad. In this economy, it's easy(ish) to rationalize a couple hundred bucks for the holiday season, but when you start talking $500-700, that's a much larger investment.
    1. talon1995's Avatar
      talon1995 - 2011-11-09, 11:38 PM
      Exactly TooSlo, they are delaying purchasing the iPad cause they do not have the money as of yet. iPads are expensive, and in this economy they are looking to stretch their dollar. My daughters iPod Touch died a couple months ago and we decided that we were going to replace it on her birthday with a 4, but when they announced the Fire, I decided to get her that instead. My main reasoning was the screen size and the price. Additionally, some of Amazons features with its book library are attractive as well. I personally think the Fire, and the new Nook, will have a larger impact on iPod sales than iPad sales. Only time will tell. There have been a lot of iPad killers that have died a quick death. I can't wait to get it and see how it compares to my iPads.
    1. slap690's Avatar
      slap690 - 2011-11-10, 12:01 AM
      Buying 2 Kindles as gifts for Christmas. No ipads. I can buy 2 kindles for less than the price of 1 ipad. It's a no brainer. Don't get me wrong,I love ipads, but I'm not rich!
    1. tabit's Avatar
      tabit - 2011-11-10, 12:06 AM
      I ordered a fire for my fathers 81 st birthday. I'm trying to decide before it is shipped if I should cancel and get an Ipad2
    1. iRepairIndy's Avatar
      iRepairIndy - 2011-11-10, 12:28 AM
      Quote Originally Posted by TooSlo View Post
      I know there's a huge difference between plopping down $200 on a toy to tinker with, and $500 for an entry level iPad. In this economy, it's easy(ish) to rationalize a couple hundred bucks for the holiday season, but when you start talking $500-700, that's a much larger investment.
      Yes, exactly.

      Why spend $500-$700? Kindle Fire does a lot of the same things the iPad can do.. The main thing here is that the iPad has a lot of extras that the average user doesn't actually use. I for one think the iPad is big.. you might as well just use a laptop or mini laptop.
    1. DaLsim's Avatar
      DaLsim - 2011-11-10, 12:34 AM
      If the fire came out before before ipad 2, i pick fire. save hundred $$$
    1. Nickaroni22's Avatar
      Nickaroni22 - 2011-11-10, 12:52 AM
      Kindle fire is a $200 toy, iPad is a $500+ investment. You get what you pay for! In the financial squeeze most people are in, or course it's easier to drop $200 before $500, that comman sense.
    1. jOnGarrett's Avatar
      jOnGarrett - 2011-11-10, 03:14 AM
      I think price only pays a small role. I could be wrong but in my own opinion if a person wants a $500 tablet (iOS or Android) they're gonna buy it. a person that's dead set on buying a $200 tablet is gonna buy it. Amazon has a loyal follwoing like Apple so I think that those are the people who are buying up all the kindle devices. they are popular and will sell just like the nook and kindle. I have a Galay Tab 10.1 a Galaxy S II and my iPhone 4, I'll be damned if I buy anything less than the best.
    1. ThuD Muffin's Avatar
      ThuD Muffin - 2011-11-10, 03:37 AM
      Anyone else here think that $200 for a tablet like this might be a little misleading? At least I'm assured stellar quality with the iPad. While not perfect apple has given consumers the confidence of buying a quality product.
    1. Cer0's Avatar
      Cer0 - 2011-11-10, 04:15 AM
      Depends on what the user wants. Many users want Apps. Right now fire lacks what people have heard about their friends are talking about because they are iOS apps or full android apps.

      Had a co-worker her daughter wanting an iPod but she was talking about getting her a cheap music player. I asked if her friends had iPods and if they play wth apps all the time and she said yes. I said then it's not 100% the music player she wants more of she wants the apps.
    1. Sniper488's Avatar
      Sniper488 - 2011-11-10, 04:57 AM
      Maybe a dumb question but will it be able to make calls like an ipad2?
    1. steve-z17's Avatar
      steve-z17 - 2011-11-10, 05:08 AM
      The Fire looks pretty cool, but I'd stick with an iPad anyday! Parkour!
    1. domenicp's Avatar
      domenicp - 2011-11-10, 06:12 AM
      You sometimes have to wonder if these surveys are self-serving for those that conduct them. When the source of such information is an investment company, you have to question it.
    1. TooSlo's Avatar
      TooSlo - 2011-11-10, 07:46 AM
      Quote Originally Posted by jOnGarrett View Post
      I think price only pays a small role. I could be wrong but in my own opinion if a person wants a $500 tablet (iOS or Android) they're gonna buy it. a person that's dead set on buying a $200 tablet is gonna buy it. Amazon has a loyal follwoing like Apple so I think that those are the people who are buying up all the kindle devices. they are popular and will sell just like the nook and kindle. I have a Galay Tab 10.1 a Galaxy S II and my iPhone 4, I'll be damned if I buy anything less than the best.
      You're definitely wrong in those assumptions about a person wanting a $200 tablet just buying it. While you may have a mountain of disposable income (I have no way to confirm/deny) the chance that someone is going to drop $200 for an unnecessary device is higher than a $500-700 device. We can all be honest in that a tablet is definitely not a needed device for MOST people.

      Americans are generally an impulsive lot, and putting a device within easy reach is a great way to bolster sales. Add in that the build quality on the BB Playbook is fairly high, and this device is produced by the same manufacturer. The Fire looks to be a fantastic little device. Hopefully Apple takes notice and develops some sort of small form factor iPad.
    1. duromega's Avatar
      duromega - 2011-11-10, 10:01 AM
      Quote Originally Posted by jOnGarrett View Post
      I think price only pays a small role. I could be wrong but in my own opinion if a person wants a $500 tablet (iOS or Android) they're gonna buy it. a person that's dead set on buying a $200 tablet is gonna buy it. Amazon has a loyal follwoing like Apple so I think that those are the people who are buying up all the kindle devices. they are popular and will sell just like the nook and kindle. I have a Galay Tab 10.1 a Galaxy S II and my iPhone 4, I'll be damned if I buy anything less than the best.
      I think this is the first time I agree with you, I fixed a Cruz table t301 7" used it for 5 minutes and sold it for $60 bucks what a piece of #%^~
    1. krosis's Avatar
      krosis - 2011-11-10, 10:51 PM
      Another thing to consider is the up-selling.

      I was looking at amazon's site the other day because the new $80 kindle entry price point is pretty awesome with the holiday season coming around. But as I started pricing it for real use.. well I don't want the ads, so now it's up to $110. The person I would be getting it for likes to mark up their books a lot so a touch / keyboard becomes more necessary.. so now we're up to $140. While not needed, 3G would be a nice add-on, and that brings it up to $190. Now it's just $10 more for a full color android version. Best $10 you ever spent.

      Then I also consider the Mfg / Retail cost ratio. The iPad 1 supposedly cost in the ballpark of $200 to mfg, then they sell it for $500. With the Kindle Fire it has been reported that it costs Amazon slightly over $200 to make each one, while they're being sold at a slight loss. I know those prices are estimates, but it still gives me a little more feeling like I'm getting more hardware value for my money with a Fire. Software value is of course a completely different game.
    1. ifine's Avatar
      ifine - 2011-11-16, 08:19 AM
      I personally think the Fire, and the new Nook, will have a larger impact on iPod sales than iPad sales.

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