Apple’s star product till last year, the iPad has some of its magic stolen by the aggressively priced Kindle Fire reports Morgan Keegan analyst, Tavis McCourt.
The bank announced reduction in shipping estimation of earlier generation iPad from 16 Million to 13 Million in the peak holiday season of December. On the other side Amazon keeps proclaiming sale of 1 Million Kindle Units per week! Further, the “wish-lists” that people can prepare on Amazon has put Kindle Fire on top.
The celebrations were already underway at Amazon, reveals Dave Limp, Amazon’s Kindle-focused VP, “Kindle Fire is the most successful product we’ve ever launched -– it’s the bestselling product across all of Amazon for 11 straight weeks, we’ve already sold millions of units, and we’re building millions more to meet the high demand”. This is despite contradictory early reviews & some problems!
We tried to analyze the causes:
- Firstly, it’s the first generation iPad that we are discussing. Apple should have reduced the price significantly of this old tablet like Blackberry did. Since iPad is now officially available in India as well, the price reduction would have worked in its favor as Kindle Fire, though went on sale recently is still labeled as Out-Of-Stock in India.
- Secondly, iPad 2 Sales are picking up, sometimes in dubious ways!. Its only logical that older devices are preferred less in light of newer & faster iterations. iPad 2 is also lighter. However, both the iPads feature similar screens.
- Thirdly, iPad is very costly as compared to the Kindle & when it comes to gifting, a $ 200 product seems like a very good idea as compared to a $ 500 one. Another introspection is that many who buy a tablet like Kindle Fire are not in the market for a $500 tablet reveals McCourt.
Let’s not forget that Kindle is portrayed as a eBook Reader & Amazon’s nifty tricks have helped keep the 7” Tablet very subsidized! Last but not least, Apple’s older iPad is a 10” behemoth as compared to the sleek 7” Kindle Fire. Ergonomics & perception do play a heavy role in a buyer’s decision. All said, Apple has reason to rejoice since iPhone sales seemed to have jumped from earlier estimations of 27 Million to 29 Million.
Should Apple be worried, scrap iPad & gear up for iPad 3?