Two analysts have released research notes pointing to the success of the iPad and Amazon’s new Kindle Fire. Both analysts note the Kindle Fire is doing well in the marketplace, but may be eating into other Android tablet sales, and indirectly increasing iPad sales at the same time.
The first report from Robert Cihra of Evercore Partners notes that the Fire is likely eating away at Android tablet sales due to Amazon’s selling of the device at cost. Meanwhile Apple is still in first place, and is taking in large profits off of each device sold.
On the other side, Mark Moskowitz of JP Morgan and the Apple executives he interviewed, see the Fire as a sort of “gateway drug”. That is, customers who puchase the Kindle Fire could eventually work their way up to a more “feature-rich” experience with the iPad.
Just as a reminder that Apple enjoys healthy competition, executives of that company stated that they welcomed the entry of the Kindle Fire to the marketplace, especially since they believe it will eat into other Android tablets.
This will be one of those competitions to watch. Both companies are taking the combined hardware/software approach. Other tablet manufactures, much like PC manufacturers, are glomming Android onto generic hardware. It looks like the end-to-end approach will be the one that wins. At least at this early stage in the tablet war.
Story and image courtesy of MacRumors.
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TAGS: iPad
