Apple’s iPad face fierce competition from Amazon.com’s Kindle Fire

The new tablet released by Amazon.com, Inc. this week, named Kindle Fire, is expected to dismantle Apple, Inc.’s iPad sales progression in the first quarter of FY 2012.

The new tab from Amazon is up for grabs in just $199 and it is not a cheap device that has a lot absent albeit a few features.

Most likely the new slate will devour a big chunk of Apple’s sales pie. In a recent survey, several users tended to mould their choices to Kindle Fire because of the cheap price tag. Only 12 percent of tablet enthusiasts opted to buy iPad and iPad 2 in any
event.

IPad’s beefed up prices, starting from $499 and up, have restricted almost 44 percent of tablet users to rethink their options. Moreover, as many are relying on the reviews once the word gets out.

The iPad sales saw a decline in sales, almost 0.6 million less than the original target expected in the last July-September quarter.

One of the reasons might be new entrants into the category but the major reason was the launch of Kindle family including the Fire, late in September. Since then, the iPad sales have plummeted in stores. According to a survey almost 2.5 million units were
still in the inventory in the last quarter as compared to 1.45 in April-June period.

The only foreseeable solution to the sales problem in the near future is major price cuts, especially on Black Friday this November 25^th.

Although that might not take over the low-priced Fire, it still will target the high-end demographic with its new price.

There are speculations that new instalment to iPad series will land in March 2012. This gossip has also hindered its sales much like what happened to iPhone 4 prior to the launch of 4S.

Rumour has it that Apple might launch its new iPad in two denominations. The March release will see an upgrade to the slate, an iPad 2S probably. The company might launch a new iPad with an HD screen and a faster processor later in the first quarter of 2013.

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Posted by Usman Khalid on Nov 16 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry