iPad 2 Makes Kindle Fire a Damp Squib
Boy Genius Report says that according to Barclays analyst Ben Reitzes, the threat of Amazonís Kindle Fire to the iPadís market dominance has been greatly reduced by Appleís move to drop the price of the iPad 2 to $399. When it was released, Amazonís Kindle Fire managed to get 14% of the global tablet market it its first quarter, and many believed that its competitive price point and Amazon brand visibility would help it to have an impact on iPad sales, but Reitzes says that this has all changed since Appleís iPad 2 price drop, mainly because consumers are happy to pay $399 for such a fully featured tablet as the iPad, rather than $199 for a tablet such as the Kindle Fire that does not come close to the specs or ecosystem of the iPad. The figures seem to very much support Reitzes view, with market research firm IDC saying that Amazon sold just 750,000 Kindle Fires in the last quarter, a big drop from the 4.8 million units that IDC said Amazon sold in its launch quarter.
Source: Apple's iPad 2 extinguished Amazon Kindle Fire demand