Fire tablet Kindle might be the best-selling gadget this holiday, pushing profit margins of Amazon.com Inc., but giving the world's leading Internet retailer potentially millions of new customers with high purchasing power. From Amazon CEO Jeff Bezos unveiled the tablet to a lower than expected price of $ 199 on 28 September, some analysts have increased their sales estimates for the device. Amazon has 95,000 pre-orders fire on his first day and had an average of 20,000 a day since then, email monitoring eDataSource company estimated. The device ships November 15.
Technology blog AllThingsD reported October 6 that Amazon is selling more than 25,000 fires a day, citing unnamed sources close to the company. "The numbers are rumored by the network are too low," said Mark Gerber, an analyst at Detwiler Fenton & Co. "very strong pre-orders and the amazing price of $ 199 means it will easily become five million units this quarter. "Gerber is expected Amazon to sell tablets 3-4000000 fire in the fourth quarter. Amazon declined to comment. However, Gerber and other analysts will be watching closely for clues on the orders of the tablet when the company reports results on October 25. The company is expected to make a profit in the third quarter of 24 cents per share on revenue of $ 10.93 billion, according to Thomson Reuters I / B / E / S.
Pedro Rojas, head of gdgt. com and co-founder of gadget sites Gizmodo and Engadget, hopes the Kindle fire is hottest product this holiday season, ahead of Roku boxes TV, and the new Canon PowerShot S100. $ 199 Fire means that people who already have more expensive iPhone Apple will buy the device as a second tablet to his family, said Rojas. "A lot of people started having more than one computer at home in recent years and cheaper netbooks met this need perfectly," Rojas told Reuters. "The fire Kindle could meet the demand for a second tablet." Other buyers will be people who do not like Apple or passed on buying an iPad, as it was too expensive, said Rojas. "They have been waiting for the iPad alternative to leave and never did," said Rojas. "Amazon was played smart - just enough dissatisfaction out there with iPad alternatives."
Apple iPad has created a new segment of the PC market and now Amazon has created a new market segment of the tablets, according to field Sunday, a partner at The Boston Consulting Group and author of a recent report on the market the tablets. "Our research suggests that $ 199 is the price the American mass market was looking for in a tablet," said Field. "This is the point where it goes from being a phenomenon of great success for the first in the consumer market." Ashok Kumar, an analyst at Rodman & Renshaw, recently raised its estimate for sales of five million units fire in the fourth quarter from a previous forecast of three million dollars. It was initially a problem with the supply of sample for the device, but this has been corrected, said Kumar. "They're priming the supply chain for this to be a very successful product in a lot of Christmas trees this season people," he said. Colin Sebastian, an analyst at RW Baird, has published an estimate of fourth quarter sales of three million tablets of fire, but said five million units are possible if Amazon keeps the production, transportation and other bottlenecks.
Initially, sales of Kindle Amazon Fire dent profitability, in part because the company is selling the device at cost or even a slight loss. Dan Geiman, an analyst at McAdams Wright Ragen, Amazon expects operating profit margin to fall to 1.5 percent in the third quarter from 3.5 percent a year earlier. However, getting the tablet into as many hands as possible can drive higher sales and profits in the Amazon in the coming years, Geiman and others said. The fire Kindle comes with a month of Amazon Prime free and the device are expected to encourage more customers to register for the service. The premium service costs $ 79 per year in the United States and includes two days free shipping on eligible purchases from Amazon.
It also gives members free access to instant streaming of more than 12,000 movies and TV shows. Amazon has more than 12 million customers in the first and buy the products at least three times after registering for the service, according to estimates by ChannelAdvisor, a provider of software that helps retailers sell online. UBS analysts Brian Pitz and Brian Fitzgerald estimated that members of the first increase in purchases of five to eight times a year or more after joining. ChannelAdvisor Amazon expects to sell more than five million tablets of fire in the fourth quarter and more than 20 million next year. UBS analysts estimated that sales have been more conservative. But if half of Kindle users register for the first fire, Amazon could end 2012 with more than 20 million "heavy-spending" subscriber of the Government, they said.
Technology blog AllThingsD reported October 6 that Amazon is selling more than 25,000 fires a day, citing unnamed sources close to the company. "The numbers are rumored by the network are too low," said Mark Gerber, an analyst at Detwiler Fenton & Co. "very strong pre-orders and the amazing price of $ 199 means it will easily become five million units this quarter. "Gerber is expected Amazon to sell tablets 3-4000000 fire in the fourth quarter. Amazon declined to comment. However, Gerber and other analysts will be watching closely for clues on the orders of the tablet when the company reports results on October 25. The company is expected to make a profit in the third quarter of 24 cents per share on revenue of $ 10.93 billion, according to Thomson Reuters I / B / E / S.
Apple iPad has created a new segment of the PC market and now Amazon has created a new market segment of the tablets, according to field Sunday, a partner at The Boston Consulting Group and author of a recent report on the market the tablets. "Our research suggests that $ 199 is the price the American mass market was looking for in a tablet," said Field. "This is the point where it goes from being a phenomenon of great success for the first in the consumer market." Ashok Kumar, an analyst at Rodman & Renshaw, recently raised its estimate for sales of five million units fire in the fourth quarter from a previous forecast of three million dollars. It was initially a problem with the supply of sample for the device, but this has been corrected, said Kumar. "They're priming the supply chain for this to be a very successful product in a lot of Christmas trees this season people," he said. Colin Sebastian, an analyst at RW Baird, has published an estimate of fourth quarter sales of three million tablets of fire, but said five million units are possible if Amazon keeps the production, transportation and other bottlenecks.
Initially, sales of Kindle Amazon Fire dent profitability, in part because the company is selling the device at cost or even a slight loss. Dan Geiman, an analyst at McAdams Wright Ragen, Amazon expects operating profit margin to fall to 1.5 percent in the third quarter from 3.5 percent a year earlier. However, getting the tablet into as many hands as possible can drive higher sales and profits in the Amazon in the coming years, Geiman and others said. The fire Kindle comes with a month of Amazon Prime free and the device are expected to encourage more customers to register for the service. The premium service costs $ 79 per year in the United States and includes two days free shipping on eligible purchases from Amazon.
It also gives members free access to instant streaming of more than 12,000 movies and TV shows. Amazon has more than 12 million customers in the first and buy the products at least three times after registering for the service, according to estimates by ChannelAdvisor, a provider of software that helps retailers sell online. UBS analysts Brian Pitz and Brian Fitzgerald estimated that members of the first increase in purchases of five to eight times a year or more after joining. ChannelAdvisor Amazon expects to sell more than five million tablets of fire in the fourth quarter and more than 20 million next year. UBS analysts estimated that sales have been more conservative. But if half of Kindle users register for the first fire, Amazon could end 2012 with more than 20 million "heavy-spending" subscriber of the Government, they said.
