With only six weeks left in the year, analysts are throwing down the gauntlet and predicting that Amazon could sell upwards of 5 million Kindle Fire tablets before the ball descends in Times Square on New Year’s Eve to ring in 2012.
While the new Amazon tablet is just hitting the front stoops of homes all across the United States, analysts are already trying to get a handle on just how many of the tablet the ecommerce giant may sell this year, and even if you look at the lowest predictions, it’s an impressive number. Sarah Rotman Epps of Forrester Research told CNN Money that she is predicting anywhere between 3 to 5 million will be sold in 2011. “Amazon has all the pieces in place to ensure a successful launch for the Fire,” said Ms. Epps. As to what this could mean for Apple and its iPad 2, she shared some thoughts on how the customer base for both devices may vary. “Amazon as a company appeals to a wider, more diverse customer base,” she said. “Our studies show a lot of iPad owners live within driving distance of Apple stores — meaning they’re concentrated on the coast. This could be a red state/blue state thing.”
Doug Anmuth of JP Morgan is even more bullish on what he thinks the Kindle Fire will mean for the tablet market saying that he thinks that 5 million will sell in 2011 and another 20 million in 2012. By comparison, Apple has sold 28 million iPad tablets since its debut in 2010. “We believe the Fire’s low $199 price point and broad distribution … will help expand the market to consumers who previously may have been reluctant to purchase a higher-priced tablet,” Anmuth said. Furthering his bullish feelings, the analyst moved his target valuation on Amazon stock from $230 to $250.
The initial reviews for the Kindle Fire haven’t been stellar, but that seems unlikely to dissuade people from picking up the tablet as the price is just too alluring to many. Can it really sell that many units with only six weeks left in the year? Let us not forget that the all important holiday shopping season is upon us, and this looks for sure to be one of the hottest gifts this year. That means that Amazon needs to sell 106,383 units per day (5,000,000/47 days left in the year when they started shipping), and that doesn’t seem like that outrageous of a goal to us.
Have you purchased a Kindle Fire yet?
[via CNN Money]