Tuesday, January 3, 2012

Kindle Fire Cut Into iPad Sales

As many as two million fewer iPads were sold this holiday season because of Amazon's Kindle Fire tablet, according to Morgan Keegan analyst Tavis McCourt.

That wouldn't strike many people as unexpected. Amazon says it sold more than four million Kindles in December 2011.

Selling at $199, compared to $499 for the lowest priced iPad, the Kindle Fire would be expected to take some "tablet" share, even if some observers would say the Kindle Fire is an e-reader, not a tablet. Kindle Fire Cut Into iPad Sales

McCourt now estimates sales of 13 million iPads in the quarter, down from 16 million, while boosting his projection on iPhone sales to 29 million, from 27 million. He now estimates that the company sold 4.8 million Macs in the quarter, down a hair from his previous projection of 4.9 million. iPad sales down

He estimates the Amazon Kindle Fire sold four million to five million units this holiday season, likely trimming iPad sales by one to two million units.

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