One of the key things we’ll be closely tracking on Tuesday during Amazon.com’s earnings call will be the overall performance of the company’s Kindle line, specifically the recently introduced Kindle Fire. Historically, Amazon hasn’t presented many specifics about sales of individual products, but that’s not stopping financial analysts from tossing out their projections.
And one analyst, Jordan Rohan of Stifel Nicolas, just upped his projections on fourth quarter Kindle Fire sales from an estimated five million to six million. Rohan contends that Amazon.com’s attractive price on the Kindle Fire, $199, is helping it win customers.
“Amazon’s device proliferation strategy has broader implications than most appreciate,” Rohan wrote in a research note. “Tablets including iPad and Kindle Fire are rapidly taking share from PCs and notebooks. Kindle Fire has staked out an important market position due to its loyal Amazon customer base and attractive (low) device pricing. We believe the lower hardware price will correlate with high e-book and video content attach rates.”
The report comes just a few days after Apple reported its own blockbuster quarter, surprising some analysts by selling a whopping 15.43 million iPads. Asked about the rise of the Kindle Fire on the earnings call last week, Apple CEO Tim Cook said that “we don’t really see the limited function tablets and e-readers as being in the same category.”
But the Kindle Fire certainly is spreading. Take a look at this graphic of Android-based tablets, which shows how the device has gained adoption in a short few months. User application sessions for those using a Kindle Fire now stands at 35.7 percent, just ahead of the Samsung Galaxy Tablet at 35.6 percent, according to Flurry Analytics.
Shares of Amazon are down nearly two percent in advance of the earnings announcement.
Previously on GeekWire: Amazon.com: What to watch in this week’s pivotal earnings report