Wednesday, February 4, 2015

Fire Tablet Bad News from Amazon Shows The Importance of Real Retail Channel

(2/4/2015) Amazon's Fire phone was a failure (causing $170 millions of write-down on its book), but its predecessor - Fire Tablet was not. Well, at least, before the Fire Phone was launched. Just within 5 years after the first generation of iPad was launched, the global tablet sales has entered its "mature stage." In 2014, the tablet sales dropped for the firs time (still before Tablet is 5 years-old), even Apple's iPad has 17.8% of sales drop. But once the biggest contender of iPad -- Amazon Fire Tablet -- had a even bigger drop of 68% in 2014, almost 70% of in sales. How can that be? This news has a very good analysis: Amazon's Fire tablets are only available on Amazon and very limited channels. But many smaller brands tablet maker had encroached a good chunk of the market share: 35.2% and was the 'only group' that saw tablet sales growth in 2014. $40 after gift card for 10" Android tablet (see captured picture below), How can Amazon's Fire beat this price? Can Bezos dodge this miscalculation again?





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