When it comes to the tablet world, the iPad has the clear lead despite the fact Apple’s tablet is very expensive. The second most successful tablet so far has been Amazon’s Kindle Fire Android tablet. Amazon is expected to have shipped 4.8 million Fire tablets in Q4 2011.
However, sales of the tablet have dropped significantly in Q1. According to IDC, Kindle Fire sales dropped to less than 750,000 units in Q1. I would think that’s to be expected with the holiday rush over. Still, that is a huge drop in sales.
The decline in orders dropped the Fire from 16.8% of the tablet market to only a bit more than 4%. That puts Amazon in third place behind Samsung and Apple in the tablet universe.
Factors Contributing to the Decline
Several factors could have contributed to the significant drop in Kindle Fire sales. One major factor is the seasonal nature of consumer electronics sales. The holiday season, particularly Q4, is a peak period for purchasing gadgets and gifts. Once the holiday season ends, a natural decline in sales is expected. However, the drop from 4.8 million units to less than 750,000 units is quite steep, indicating other underlying issues.
Another factor could be the competition from other tablet manufacturers. While the Kindle Fire was initially successful due to its lower price point compared to the iPad, other companies have since released competitive products. Samsung, for example, has a wide range of tablets that cater to different market segments, from budget to high-end models. This diversification allows Samsung to capture a broader audience.
Amazon’s Strategy Moving Forward
Amazon needs to rethink its strategy to regain its market share. One approach could be to introduce new features and improvements in the next generation of Kindle Fire tablets. For instance, enhancing the display quality, battery life, and processing power could make the Kindle Fire more appealing to consumers. Additionally, integrating more Amazon services, such as Prime Video, Kindle Unlimited, and Alexa, could provide added value to users.
Another strategy could be to diversify the product line. Introducing tablets with different screen sizes and specifications could attract a wider range of customers. For example, a smaller, more portable version of the Kindle Fire could appeal to students and professionals who need a device for on-the-go use. On the other hand, a larger, more powerful version could attract users looking for a tablet that can handle more demanding tasks, such as graphic design or video editing.
Amazon could also consider more aggressive marketing and promotional campaigns. Offering discounts, bundle deals, and limited-time offers could entice more consumers to choose the Kindle Fire over competing tablets. Collaborations with educational institutions and businesses could also open up new market segments.
In conclusion, while the Kindle Fire experienced a significant drop in sales in Q1, there are several strategies Amazon can employ to regain its market share. By addressing the factors contributing to the decline and innovating its product line, Amazon has the potential to once again become a strong contender in the tablet market.
via AllthingsD
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