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Amazon results tank as it ships 'millions more' Kindle Fires

updated 05:05 pm EDT, Tue October 25, 2011

Amazon hints taking big price hit for Kindle Fire

Amazon on Tuesday revealed that it had very strong demand for its Kindle Fire tablet and Kindle Touch reader. CEO Jeff Bezos claimed that pre-orders were so strong that Amazon was bulking up production at Quanta to handle the load. "Millions more" were being made, Bezos said.

Even the traditional e-paper updates, the fourth-generation Kindle and Kindle Touch, got twice as many orders in the first three weeks as for the third-generation model's arrival.

The claims cast doubt on how much Amazon is actually shipping but are consistent with Amazon's habit of refusing to provide numbers. In the past, it has argued that revealing shipments would give up a competitive advantage, though they're believed in the public at large to be attempts to avoid unfavorable comparisons.

Its fiscal results for the summer supported the shipment spike as well as theories that Amazon was selling the Kindle Fire at a loss to build share. It made $10.88 billion in revenue, just below the $10.9 billion the market had predicted. Profit was also much lower: it made $63 million in the summer where it had made $231 million a year ago.

Outlook for the fall was potentially disappointing. It gave a wide spread of between $16.45 billion and $18.65 billion in raw revenue. Most had expected it to lean towards the high end, at about $18.15 billion.

The Kindle Fire performance could lead to Amazon almost immediately making the most popular Android tablet in the world. Most of those clinging to the official Android experience usually only sell a few hundred thousand tablets a quarter, just a small fraction of the now double-digit millions of iPads sold each season. A low price and a deliberate attempt to get away from the stock Android experience may have worked in Amazon's favor by minimizing direct comparisons to the iPad and catering to those put off by the colder stock Android interface.

by MacNN Staff



    Comment buried. Show
  1. imNat-imadouche

    Joined: Dec 1969


    Go Amazon

    Love the kindle!

  1. andrewbw

    Joined: Dec 1969


    For what it is...

    I think the Fire is the best option out there if your needs are for an inexpensive, tablet-like media device; one can only assume it will provide a better, more integrated experience than any of the current Android tablets or the abandoned TouchPad. Not everyone can afford a $499 iPad, or even needs one. While I like mine, I completely see the value in a product like the Fire and hope it does well.

  1. ggirton

    Joined: Dec 1969


    my kindle broke

    too close to the warranty for comfort -- Amazon's comfort. They offered to replace it for $80 (I declined) and then one week later shipped a $79 Kindle. So basically, I have to read my Kindle books on my computer -- except for the New Yorker magazine, that doesn't work on the computer Kindle app. So ... I cancelled that.

  1. BlueGonzo

    Joined: Dec 1969


    Numbers please

    I hope he tells the numbers sometimes. "Millions" is not really a exact number.

  1. ElectroTech

    Joined: Dec 1969


    Sold by the brazilians

    What he really meant was they were sold by the brazilians. . . . . Remind me again, how much is a brazilian?

  1. OS2Guy

    Joined: Dec 1969


    Kindle Fire: DOA

    I simply don't understand why the press continues to flout the Amazon Kindle Fire product other then Amazon has budgeted nearly 1 billion in advertising for the lame product. Those duped into buying will be sorely disappointed and Amazon share holders have to be very angry of just $63 million profit this year versus $231 million last year. I would drop that stock el pronto.

  1. facebook_Robert

    Via Facebook

    Joined: Oct 2011


    7" tablets are popular

    The key was the 7" form factor, the $199 price, the Amazon ecosphere - it's doing a lot of things right, and only a few things wrong.

    It is not wrong to customize Android - and that's because Android stock is terrible. But you don't want an old build of Android that doesn't have the latest javascript engine, most compatible webkit support (as compared to mobile Safari), or any of the other's not an advantage to start with an old version of Android - thats a miss.

    But you know what, overall they figured out the formula for success.

  1. Inkling

    Joined: Dec 1969


    Be careful Bezos

    Be careful Bezos. I think the Kindle Fire is an excellent product at a great price, but quite a few of those orders could be people reserving their place in line who've not decided to buy or not. I thought about doing that myself. One slight glitch, and there could be several hundred thousand cancelations as people decide to wait for the Kindle Fire 2.

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