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Analyst cuts projected Kindle Fire sales numbers in light of Nexus 7

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The early popularity of the Nexus 7 is great news for Google, but not so much for their competitors. Amazon, who is said to be gearing up for a late summer launch of an updated version of their Android-based Kindle Fire, has the most to lose in the 7-inch tablet market. The retailer surely won’t like news that Cowen analyst Kevin Kopelman is reducing his sales forecast for the Kindle Fire in 2012.

Kopelman now says the Kindle Fire, which competes directly at the Nexus 7’s $199 price point, will sell in the range of 12 million units, a reduction of 2 million from his initial forecast of 14 million. The lower sales numbers equate to a 2 percent reduction in projected revenue in 2012 and a 3 percent reduction in 2013.

We’ve yet to see any hard data comparing first month sales figures of the Nexus 7 and Kindle Fire, but it is known that sales of Amazon’s tablet have dropped off since an initial holiday boom. Rumored specs for a Kindle Fire 2 put it closer to the Nexus 7 in terms of hardware, but it remains to be seen if the new model will spark sales.

[CNET via DroidDog]

 

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17 Comments

  1. … back to the roots amazon. keep selling digital content, which could be used across all platforms …

    1. thats what makes the kindle fire, I have a prime account so I have free access to movies and tv shows along with some books on their kindle lending library.

      1. here is the thing though, you can still get access to your prime account on your nexus 7

  2. Still trying to decide whether to get two of the N7 (me and wife(&or)daughter) or get a Asus Infinity for myself….

    1. there is only one answer: one N7 and one Infinity !

      1. Presumably price is the factor here. I’d go with two N7s – brownie points from the Mrs/kid, and is the Infinity REALLY all that much better that it’s twice the price? I think not.

  3. I bet its over a 2-3% drop in sales..I cant figure out why anyone would pick the new Kindle to the Nexus 7..That thing is a beast!

    1. sadly, market awareness is the culprit.
      Kindle Fires sell at Target,BestBuy,WalMart brick/mortar stores. average consumer won’t know they’re missing a Google 7″ beast of a device.

  4. It will make amazon put out something better. Android community will only benefit from it. N7 is freakin awesome.

  5. I own both (Nexus arrived yesterday) as well as (at one time or another,bought to fiddle with and then given away) rooted Nook Color, HTC Flyer,and Galaxy Tab 2/7.

    Amazon is in trouble if they try to keep new fire a closed system.

    I’ve had the Nexus for just a day but I have to believe that it may be a turning point in the industry. The nexus was not supposed to be a competitor for the ipad but it is going to have an impact and apple will be lucky if they can produce an ipad mini to compete with the nexus.

    Fwiw, the nexus lives up to the hype. I can hardly wait to duke it out with with my son’s iPad. And I want to see how Siri handles “show me pictures of Australopithecus afarensis.” Took about a second on the nexus to get the results.

    1. An 8″ iPad is being released by Q4 this year. Possibly sooner. NYT, CNN, & WSJ have already ‘leaked’ its existence. It’s widely expected that the ‘mini’ iPad would mean game over for competitors in the 7″ tablet space. I hope the Nexus gets some traction and keeps it (unlike the Kindle Fire) by the time the smaller iPad comes out. My prediction: Apple will release an iPad mini with, per usual, a killer feature that gives it a distinct edge over its less focused rivals. Competition is good, but Android is still generally regarded as a “me too” OS, which it is. So here’s hoping Amazon & Google squeeze in some decent market share in light of Apple’s iPad, and soon iPad mini, juggernaut.

      1. I don’t think the mini iPad will do as well as ppl and apple would like to think. Obviously no one knows any sure specs but the estimated price will be $299-399 hardly a “bargain” for a 7″ tablet. Not to mention it will not have the retina display so asides from iOS 6 (which IMO is very lackluster) it has nothing to offer. However I will say this…since most Apple users live in a bubble and don’t realize there’s a whole other world around them they will surely buy the mini iPad like drones. Worst part will be the idiots who already own a normal iPad and still choose to buy a mini iPad. Either way the N7 is doing very well and its an incredible piece of technology for its price point.

        1. Pretty amusing that you say “most Apple users live in a bubble” when almost everything you say about Apple is incorrect. Where do I begin: 1) “estimated price will be $299-399”. Wrong. Most legitimate leaks (NYT) point to a sub $300 price point. Your comment is made all the more laughable by the fact that Apple currently sells the iPad 2 for $399. 2) “hardly a “bargain” for a 7″ tablet”: The smaller iPad is rumored to measure closer to 8″. 3) “iOS 6 which IMO is very lackluster”: You do realize that developer releases typically omit certain confidential features (Siri), right? 4) “Apple users live in a bubble”: It’s fairly clear by your ignorant comments that Android users are the ones living in a bubble. For me, I use both iOS and Android, Mac and PC. I’ve been transitioning to Apple as it does generally make better, more innovative tech. But I am rooting for the Nexus 7. I just think that Apple will release a more market focused, killer feature oriented mini iPad that will probably render the Nexus 7 rather generic.

          1. Hop off your pedestal there, buddy. I have an inkling that you’ve never used a quality android device. The nexus 7 is no joke, its already changing the game. This is the beginning of the end for Apple’s ridiculous price points. Apple products are great, but as a user of both an iphone 4s and a nexus 7, I prefer the nexus (and its price) hands down.

  6. This is dumb. The two have the same prices but way different target market. The Fire primary market is the e-reader, you know the older people who want a color screen to read and rate book. The Nexus 7 is for the geek. Does a 50/60 year old person enough know what a T3 is or care? The Fires is easier to use, and old people like easier.

    1. have you ever used a kindle fire? it is by no means easier than what is essentially a galaxy nexus on steroids.

      1. yes I have used it, it very easier. I know many tech people who used it and it very much easier to used. You’re use to android so when you use a fire it is different to you. The Galaxy Nexus suck, the only thing it has going for it was ICS when it was release.

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