Wednesday, November 28, 2012

Amazon.com, Inc. (NASDAQ:AMZN)’s Market Share in Tablet Market Expected to Surge in Q4

Analysts at Pacific Crest have predicted that Amazon.com, Inc.(NASDAQ:AMZN)’s share in the tablet market will go up in the 4th quarter due to the strong sales figures of its Kindle devices, but Apple’s iPad will still rule the roost in that segment. Intense research has been conducted and the supply-chain research reveals a greater than before production orders for the Kindle Fire HD, which is now sold by the online retailer in many configurations and sizes.

In fact, the broker increased their forecast for the Kindle lineup of products. It is expected to comprise 13% of the tablet shipments for the year as compared to the 11% that was predicted some months back. Apple will dominate the tablet market, with the iPad accounting for 63% of shipments for 2012, even though it is a comedown from the expected 65% by the broker a month back.

Chad Bartley of Pacific Crest clarified that the increment in demand for the Kindle Fire has been stronger than expected. This trend is a clear indication that Amazon is giving effective competition to giants like Google and Apple in the near term and the increased device ownership could drive sales of digital media and physical products in their favor over the long term.

A statement released by Amazon on Tuesday contained a report of the sales of its line of Kindle devices including its e-readers, which more than doubled over the Black Friday weekend. Detailed unit figures were not revealed. A bigger version of the tablet has been released by the company with an 8.9-inch screen costing $299. Its predecessor, the 7-inch Kindle Fire is priced at $199. However, the initial demand for the bigger tablet is lukewarm. The iPad mini from Apple has a starting price point of $329.

Pacific Crest analyses demands for other tablets too such as Google, whose Nexus 7 tablet shipments fell to 4 million units from 5 million for the full year, due to slower-than-expected demand. The Surface tablet from Microsoft is not doing too well as per data that indicates weak production orders.

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