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Amazon Kindle Fire nabs number two slot in tablet market, claims new report

News by Dan Seifert on Friday February 17, 2012.

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Amazon Kindle Fire
Amazon Kindle Fire

Though Amazon refuses to spill the beans when it comes to actual numbers of Kindle Fire units it has sold to date, we do know that it had a strong holiday quarter with its entertainment slate. A new report from IHS iSuppli seems to back that up. According to iSuppli's research, Amazon is now the number two tablet maker in the world, leap frogging Samsung and taking a distant second to market leader Apple.

According to iSuppli, Amazon shipped 3.9 million Kindle Fire tablets during Q4 2011, enough to give it 14.3 percent of the market. Samsung, despite having many more options on store shelves and having been selling tablets for far longer than Amazon, only managed to move 2.1 million tablets during the holiday season, giving it a meager 8 percent market share. Of course Apple is far and away in the lead in the tablet market, with 15.4 million units sold and a 57 percent share.

What isn't covered by iSuppli's report is the profitability factor, and it has long been assumed that Amazon takes a loss on each Kindle Fire sold, expecting to make it back on sales of content through its connected services like Kindle books and AmazonMP3 music. Where Apple makes a considerable profit on each iPad that it pushes off the shelves, other manufacturers have not been able to reach those margins, and instead have elected for different business plans, as seen by Amazon's approach. [via All Things D]

IHS iSuppli Q4 2011 tablet market
IHS iSuppli Q4 2011 tablet market

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About the author

Dan Seifert
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.

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