Amazon Kindle Fire – how is it selling?

The Amazon Kindle is reckoned to be the most serious tablet challenger for Apple to date. Analysts have been quick to post that they feel it will slip into the number 2 spot soon, if sales are as initially predicted. How is the tablet selling so far?

Amazon have not released official information yet on their sales figures, but a market researcher has been tracking sales of the 7 inch tablet and he has offered some early estimates.

Carter Nicholas, CEO of eDATASource said “Our estimate is that Amazon.com has now sold 850,000 units direct from the Amazon.com site. Total sales would be substantially larger. Amazon may have sold as many as 2 million or more so far when you consider all sales channels.”

Best Buy have also said “The Fire is selling well at Best Buy. Trendwise, sales are picking up if you compare second half of November to second half of October, the rate of sales is up 63%.”

While sales look very promising so far, it is important for Amazon to generate money from sales of books and software. For every Kindle sold, Amazon lose $10, as their strategy is to flood the market with hardware, knowing they could potentially generate millions from sales of software alone. It is a risky strategy, but due to the infrastructure of the online store, a profit could easily be made, long term.

According to reports on Digitimes, shipments of the Kindle Fire from Quanta Computer to Amazon have reached 3 – 4 million.

Kitguru says: Have you bought one yet? Worth the money?

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