Kindle Fire Will Crush Other Android Tablets, May Increase iPad Sales Say Analysts

In newly released research notes, a pair of analysts have praise for both Apple and Amazon's tablet efforts. They note that the Kindle Fire appears to be doing extremely well, though it is not challenging the iPad directly. In fact, Fire sales could indirectly encourage iPad purchases in the long run.

ipadvskindle
Evercore Partners' Robert Cihra writes in a note obtained by Apple 2.0:

While Amazon's Kindle Fire has come out of the gates strong, as expected, we see Apple maintaining its competitive lead, if anything accentuated by what now looks like the only tablet to so far mount any credible iPad challenge apparently needing to do so by selling at cost; not to mention Amazon's success may just vaporize other "for profit" Android tablet OEM roadmaps (e.g., we est Amazon 50% of all Android tablets in CY12). Meanwhile Apple goes on as the only vendor able to cream off the most profitable segment of each market it targets, whether tablet, smartphone or PC.

At the same time, JP Morgan analyst Mark Moskowitz (and the Apple executives that he met with) feel that Apple is not seeing pressure from the Kindle Fire and that they are of the belief that current Fire owners "could gravitate to more feature-rich experiences" later on with the Fire acting as a "gateway drug".

Darrell Etherington, writing for GigaOm:

I think Apple’s optimistic outlook should pan out, however, as long as one thing remains true: tablets continue to encroach upon and replace PCs as primary computing devices for general users. In that case, the Kindle Fire and the iPad likely will enter into a mutually beneficial orbit, with the cheaper device’s drawing in first-time tablet users and the iPad’s acting as a sort of graduation gift for when they opt to use tablets as their main computers.

When the Kindle Fire launched, Apple executives said they welcomed the entry of the Fire to the market for its ability to further fragment the Android ecosystem and its ability to put enormous price pressure on other tablets. The popularity of the Kindle Fire seems to affirm Steve Jobs' belief in an end-to-end software-and-hardware ecosystem -- something that no companies other than Apple and Amazon have been able to effectively assemble.

Popular Stories

iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
ios 18 button bulge

iOS 18 Adds Pop-Out Bezel Animation When Pressing iPhone Buttons

Tuesday June 11, 2024 10:40 am PDT by
iOS 18 includes a small but interesting change for the buttons on the iPhone, adding more of a visual element when changing volume, activating the Action button, or locking the screen. When you press an iPhone button in iOS 18, the display bezel bulges outward slightly. This feature is available for the volume buttons, Action button and the power button, and it will also likely be used for...
maxresdefault

First Look at Messages via Satellite in iOS 18

Thursday June 13, 2024 11:29 am PDT by
Apple has been gradually expanding its suite of satellite connectivity features for iPhone, and iOS 18 brings a significant new one in the form of Messages via satellite. The feature allows users to send and receive iMessages and SMS texts, including emoji and Tapbacks, while out of range of cellular and Wi-Fi networks. CNET met up with Apple's senior director of platform product marketing,...
iOS 18 Wallet Feature

Here's What's New in Apple Wallet on iOS 18 for Event Tickets and More

Friday June 14, 2024 7:32 am PDT by
iOS 18 includes a handful of enhancements to the Wallet app on the iPhone, with new features for Apple Pay, Apple Cash, event tickets, and more. Below, we outline everything new for the Wallet app on iOS 18, based on information from Apple's press release and a WWDC 2024 coding session. Redesigned Event Tickets Event tickets have an all-new design in the Wallet app on iOS 18, complete...

Top Rated Comments

ravenvii Avatar
164 months ago
The wife has an iPad, a Kindle, and I got her a Kindle Fire ($199) the other day.

She says the Fire is awesome. I can't stress the word "awesome" enough other than bolds, italics, etc. which would be annoying. She said it's the fastest tablet-ish device she's used and thinks the browser is much better than the iPad.

2nd...she LOVES her Kindle...has owned it for 2 years I think...she's a huge book reader.

3rd...she likes the iPad...but (like me) feels browsing websites (especially shopping sites) is fair...no flash support, pull down menus/choices within the site (like a clothes store trying to choose options) is really rough. She also feels that for $500+, it's essentially an email reader and light surfing (looking up weather, reading some articles) machine...screen is too harsh on the eyes to stare at.

Maybe iPad 3 will finally get the browser right. Would be nice if the iPad 3 were significantly cheaper.

Would be nice to see a Fire that is larger more surfing use cases.

1) The Kindle Fire's browser, faster than the iPad's? Something is very, very wrong with your iPad, I am afraid.

2) Don't get too comfortable with Flash on the tablet - this is the last version that Adobe will make - they have abandoned Flash on mobile devices.
Score: 13 Votes (Like | Disagree)
miles01110 Avatar
164 months ago
Kindle Fire Will Crush Other Android Tablets, May Increase iPad Sales Say Analysts

Kindle Fire Won't Crush Other Android Tablets, May Not Increase iPad Sales Say Other Analysts.
Score: 12 Votes (Like | Disagree)
Matthew Yohe Avatar
164 months ago
I saw a Fire at a brick and mortar big-box store this weekend, and was blown away. Not because it was all too impressive, but because tapping the word "Web" doesn't let you use the awesome Silk browser, rather it shows you a video of what browsing would be like.
Score: 10 Votes (Like | Disagree)
Amadeo Avatar
164 months ago
The whole "graduation" upsell is possible in theory. But as a marketer myself, it's harder to do it when the graduation is between two competing software/service ecosystems. This is part of the reason why Apple's retainment is so high. Once you buy into their ecosystem, it's hard to get out of it. Because you've invested X amount of dollars into software and content that is only available in that ecosystem.

The situation is no different with Amazon. Apple may be in for a rude awakening if people will be so quick to switch ecosystems from Amazon to theirs when they're "ready". It would be interesting to see Amazon create Fire "Pro" that more squarely competes with the iPad, and keeps users moving vertically within the ecosystem.
Score: 8 Votes (Like | Disagree)
DouchGod Avatar
164 months ago
If i look at both devices as purely a content consumption device Amazons Kindle Fire is a attractive alternative to the iPad.

The Apple App store is what makes my iOS devices great and in my opinion no other app store comes close, it's just a shame the 'Mac" app store isn't that great at the moment.
Score: 8 Votes (Like | Disagree)
Skika Avatar
164 months ago
"says analyst"

:rolleyes:
Score: 6 Votes (Like | Disagree)