Have you purchased a Kindle Fire yet? Priced at $199 and released just a few weeks before the holiday rush, Amazon is making a big bet on a device that it is selling for less than it costs to build.

The aggressive sales push could help elevate Amazon to a significant player in the tablet market relatively quickly. Citi analyst Mark Mahaney estimates that Amazon.com will sell 12 million Kindle Fire devices next year, giving it a $3.2 billion revenue boost and 15 percent market.

Amazon is planning to release larger versions of the Kindle Fire next year, which could help juice sales. But, even so, 12 million units seems a bit ambitious for a device that launched to mixed reviews on November 14th.

Nonetheless, the estimate should be enough to make Apple — whose iPad has dominated the nascent tablet market to date — stand up and take notice.

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  • Guest

    On the rare occasions I’ve been able to pry it out of my son’s hands, I’ve really enjoyed the Kindle Fire. Looking forward to the app ecosystem for the Kindle Fire exploding (as I’m sure it will) to compete better with the iPad. That’s the only real drawback right now—the big stuff’s there, but there’s a lot of the long tail missing.

  • Guest

    They might gain enough ground to take over 15% of the market in the USA, but they are losing serious ground in Canada… The fact that they decided to not have the Kindle Fire available north of the border, as well as the new Kindle Touch, is making Canadian turn their backs on Amazon at an amazing rate and going to iPads and Kobos instead. I have a “keyboard” Kindle and was hoping to be able to switch to the Kindle Fire, or at least the Kindle Touch, but am now thinking of ditching Amazon all together.

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