Why the Kindle Fire Is Toast (Mobiledia)
Amazon is banking on a 10-inch tablet to gain market share, but it may be too little, too late, as the Kindle continues to lose its footing. Kindle sales slowed this quarter, according to IDC, partly due to a drop-off after brisk holiday business, but its lackluster performance may hint at trouble on the horizon for Amazon as customers continue snapping up iPads. Target announced it will not sell Kindles starting this spring, another hit for the company, as it was the third-largest Kindle retailer. The retailer's announcement is a double blow to Amazon, following news Apple is launching mini-stores in the popular big-box store. The Kindle sold well as a Christmas gift, but Amazon is having a hard time keeping sales steady as competition in the tablet market increases. The debut of the new iPad likely cut into Kindle sales, as did a strong entry into the tablet market by smaller rival Barnes & Noble. Amazon has a hard road ahead, because in addition to its sales decline, research shows customers prefer the iPad to the Kindle, despite the price difference. Budget-conscious shoppers took a chance on the Kindle and picked it up as a ...
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