February 24, 2012
Analysts — and customers — predict Amazon losing significant tablet sales to B&N and Apple
by Dennis Johnson
Barclay’s analyst Anthony DiClemente made Wall Street news yesterday when he announced he was “cutting his estimates for [Amazon's] sales of Kindle e-book reader and Kindle Fire tablet computer” because he sees “Amazon facing stiffer competition in the form of the $199 8-gigabyte model of Barnes & Noble’s (BKS) ‘Nook Tablet,’” according to a Barron’s report by Tiernan Ray.
The cut was a notable one: DiClemente lowered his estimate from 23.8 million units to 18.4. What’s more, “DiClemente also now thinks Amazon sold fewer Fires in the fourth quarter than previously imagined,” says the report.
Meanwhile, a PC Magazine report by Angela Moscaritolo details a survey of Kindle owners that found “more than half of respondents who currently own Amazon’s Kindle Fire tablet plan to buy an iPad 3,” which is expected to be released in March. Says the report, “this finding could indicate that Kindle Fire users are dissatisfied with their tablet.”
Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.