The newly released Kindle Fire tablet device from Amazon could be the best selling gadget during the holiday season, according to the analysts from the industry. This can increase the pressure on the profit margins for Amazon; however the sales will also provide the company which is the largest online retailer millions of potentially high spending customers.
Right from the time Jeff Bezos, the CEO of the company unveiled the Kindle Fire on the 28th of September at a much lower price of $199 than had earlier been expected many analysts have increased their estimates for the sales of the device. On the first day itself, the tablet brought in 95,000 pre-orders and has since been getting 20,000 orders everyday on an average. The shipping of the device will start on the 15th of November.
According to a report from a well-known technology blog which cited some anonymous sources from inside the company, Amazon is selling more than 25,000 tablets per day. An analyst named Mark Gerber said that the numbers which are being rumored over the internet are quite low. He said that the large scale pre-orders and the low cost of $199 for the Kindle Fire will ensure that Amazon will sell more than 5 million tablets this quarter quite easily. Pre-order the Kindle Fire for only $199.
Gerber had previously expected the company to sell around three million units of the device in the fourth quarter. There was no comment from Amazon; however the analysts will be closely observing the orders for the Kindle Fire when Amazon reports its quarterly results on the 25th of October. It is expected that the company’s stock will profit by 24 cents on the revenue of $10.93 billion.
Peter Rojas, who has founded some of the largest technology based websites on the internet, has expressed his expectations that the Amazon Kindle Fire will be the largest selling product during the holiday season. He said that the low cost will make the tablet an option for even those users who already own an Apple iPad, which is much more expensive, to buy it as a second tablet for their homes.
He drew a parallel with people buying more than one computers with the advent of netbooks which are available at much lower prices. The sales of the tablet are expected to reduce the profitability of Amazon initially as the company is selling the tablet at close to its manufacturing price or at a small loss. Learn more about the tablet with high expectations in our detailed Amazon Kindle Fire Review.