‘The Demand For Amazon’s Kindle Fire Is Actually Very Weak’December 31, 2012 8:41 am
We had spotted some Amazon Kindle Fire statistics in the past – today there is an article at SeekingAlpha that attempts to decode Amazon’s cryptic statements and some numbers from other retailers selling Amazon’s products – the conclusion is that the demand for Amazon’s Kindle Fire, particularly the higher end models, is not very good.
How do we digest this analysis? Here is one point: the lower end models do not make any money for Amazon. Profits go up only on the higher end models. Issue is, consumers compare the high-end models to the iPad and probably choose the latter. Which becomes a thorny issue for Amazon, since on the lower end Kindle Fire models, it now has to absolutely make money by selling content.