Amazon's share of flat-panel sales fell due to price cuts

Early morning news on June 16th, due to the introduction of new products, the old-fashioned Amazon tablet is very likely to cut prices.

IT Business News learned that sources from the upstream supply chain stated that Amazon is considering launching new e-readers and 7-inch tablets at the beginning of the third quarter, while the current 7-inch Kindle Fire may have a price cut of US$149.

The source believes that in order to increase market share, Amazon is likely to adopt a product strategy similar to Apple. Every time the new iPad is introduced, Apple will sell the previous generation at a lower price to increase its share in the low-end market.

According to reports from Sina Technology, Amazon is expected to launch a new 7-inch tablet in the third quarter with a screen resolution of 1280x800 and a price of $199. The tablet is aimed at the high-end market. In addition, Amazon will lower the price of its first-generation Kindle Fire to $149. Due to user-friendly prices and features, the Kindle Fire sold 4.5 million to 5 million units in the fourth quarter of last year. However, because this product is mainly aimed at the U.S. market, sales in the first quarter of this year dropped rapidly to 700,000 to 800,000 units.

According to previous news, in addition to 7-inch tablets, Amazon will also introduce 8.9-inch and 10.1-inch tablet products. However, the latest information shows that Amazon has suspended the development of 8.9-inch tablet PCs, and 10.1-inch tablet PCs will be launched in the fourth quarter of this year or the first quarter of next year.

In terms of e-readers, Amazon is developing a 6-inch backlight-enabled product. According to sources, this product will be available as early as the third quarter of this year. In addition, Amazon may launch other sizes of e-readers in the second half of this year.

Earlier, news of the decline in sales of the Amazon tablet Kindle Fire Q1 has been reported.

The news quoted the latest data released by IDC. In the first quarter of this year, Amazon’s share in the global tablet PC market declined due to the decline in sales of the Kindle Fire, and the iPad’s market share rose to 68%.

Data show that the market share of the Kindle Fire fell by about 4% in the first quarter, down from 17% in the fourth quarter of last year. The iPad’s market share in the fourth quarter of last year was about 55%. Since the price is less than half of the entry-level iPad, the Kindle Fire soon became the second-ranked tablet in market share after launch.

Colin Gillis, an analyst at BGC Partners, said that the Kindle series is usually best sold in the fourth quarter. As consumers look forward to the introduction of new products, the decline in sales of the first generation Kindle Fire is a normal phenomenon. He said: "About six months after the launch of the product, consumers began to get bored. Amazon performed well and naturally during the Christmas holidays."

According to IDC data, global shipments of tablet PCs doubled year-on-year to 17.4 million units in the first quarter, up from 7.9 million units in the same period of last year, but lower than the 28.2 million units in the fourth quarter of last year. 38.4% of the chain's decline was more than 34% of IDC's expectations.

In the first quarter, the Kindle Fire’s share in the tablet market was exceeded by Samsung Electronics. However, James Kelleher, an analyst at Argus Research, said that the success of the Android platform in smart phones has not yet extended to the tablet area.

He said: "In addition to Samsung, there are no first-line vendors that can launch outstanding tablet products that can compete with Apple. The Android platform has performed strongly in the smart phone field, but it has performed poorly in the tablet market. This phenomenon is surprising." comScore Last week said that the Kindle Fire's share of the Android tablet market in February this year was 54.4%, higher than 29.4% in December last year.

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