Analyst: Kindle Fire burning iPad sales
Amazon’s Kindle Fire tablet has cut into sales of Apple’s iPad, according to investment research from a stockbroking company.
In a note to investors, Morgan Keegan analyst Tavis McCourt said that figures from Amazon suggested it had sold up to five million of its Android-based Kindle Fire tablets. The surge in sales would cost Apple sales of two million iPads, the analyst said in its note, although iPad sales should still generate almost a quarter of Apple’s revenue.
“We are lowering our unit shipment estimates for iPad in the December quarter from 16 million to 13 million,” the company said in advice to customers seen by business publication Barrons.
“Based on data from Amazon, we believe the Amazon Fire likely sold four to five million units this holiday season, which probably means maybe one or two million cannibalised iPad sales at most.”
However, the analyst predicted iPhone sales would outperform earlier expectations, with sales of 29m units compared to forecasts of 27m handsets.
The Kindle Fire was released last year in the US, although it is expected to arrive in the UK early this year.