Amazon’s Kindle is No Longer on Fire

Shipments slump in Q1 after a strong holiday season

   

Coming in hard on the heels of a nasty spat with Target Stores (NYSE:TGT) over distribution of their products, the last thing Amazon (NASDAQ:AMZN) wants to see is a slowdown in overall sales of their hottest selling flagship product, the Kindle Fire.

But that’s exactly what happened.

After a strong holiday season, shipments of the Kindle Fire have slowed, and the e-reader’s overall market share fell to around 4% in the January-March quarter, down from the 17% the device captured in the fourth quarter of 2011, according to a report in Reuters.

While not necessarily viewed as a “tablet” device, the Kindle Fire is considered part of the overall tablet market, where Apple (NASDAQ:AAPL) still reigns supreme, increasing their market share to 68% in the first quarter of 2012, up from 55% in the last quarter.

Samsung claimed the #2 spot of market share, followed by Lenovo and Barnes and Noble (NYSE:BKS). Barnes and Noble recently announced a partnership with Microsoft (NASDAQ:MSFT) for distribution of their Nook e-reader.

Overall tablet shipments are slowing, as the increase in Apple sales were not enough to offset an overall drop in Android-based tablets. However, the 17.4 million devices sold worldwide still represent a 120% year-over-year increase.

 

 


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/amazons-kindle-is-no-longer-on-fire/.

©2014 InvestorPlace Media, LLC

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