Amazon are on track to dominate the Android tablet market in 2012, according to Evercore Partner’s Robert Cihra in a note to investors.
CNN reported on the story, and Cihra said “While Amazon’s Kindle Fire has come out of the gates strong, as expected, we see Apple maintaining its competitive lead.” He added that Amazon’s Fire is the “only tablet to so far mount any credible iPad challenge. Amazon’s success may just vaporize other ‘for profit’ Android tablet OEM roadmaps.”
Kitguru said months ago that if anyone could do it, that it would be Amazon. We said that their store infrastructure is already a success, so tying it all together wouldn’t prove that difficult. The only concern for Amazon is the fact that they are losing money on every Amazon Fire they sell, around $10. IHS iSuppli have worked out that it costs Amazon $210 to make a Kindle Fire, and they sell them for $199. The firm however have said that the loss isn’t quite that big, hinting at a $5 loss per unit.
While Amazon are set to dominate the Android market, it appears Apple have the superior business plan, making a substantial amount for every iPad sold. Changewave have also said that the $199 tablet from Amazon won’t dethrone the Apple iPad but it is likely to eat away at all other companies shares in the market.
Kitguru says: Are Amazon on track for an Apple attack in 2013? Next year we would expect them to control the number 2 position, but perhaps in 2013 they can aim for the top spot.