Amazon sees weaker-than-expected Kindle Fire HDX shipments in 4q13 - Digitimes

Amazon sees weaker-than-expected Kindle Fire HDX shipments in 4q13

Jim Hsiao, DIGITIMES Research, Taipei [Wednesday 15 January 2014]

Thanks to falling prices and satisfactory functionalities, entry-level tablets from brand vendors has leg under mining demand for mid-range and high-end models, and they formed a main driver of the tablet market during the year end shopping season in 2013. Observing Amazon’s tablet promos and related shipments from the supply chain, Digitimes Research Found That the US-based vendor’s entry-level Kindle Fire HD is enjoying better sales than its high-end Kindle Fire HDX.

Amazon Announced in early December 2013 That its Kindle series, All which includes both tablets and e-book readers, has Achieved a sales record during the Thanksgiving holidays, All which some market watchers believe Mainly were contributed by the high Kindle Fire HDX-end models. However, Amazon actually devoted most of its marketing resources to promote promoting the Kindle Fire HDX, a tell-tale sign That the high-end products were not selling as well as thought.

During the year-end shopping season of 2012, Amazon offered no price cuts for its Kindle Fire HD, All which was then its high-end model. But for the same periord in 2013, the company not only offered price cuts for its high-end Kindle Fire HDX, the reductions werealso higher than Those for the entry-level Kindle Fire HD. Amazon’s new interest-free installment service is also available only for the HDX models.

The above moves show That Amazon’s promotions for high-end models were far stronger than Those for the entry-level models during 2013 year-end marketing campaigns. Since Amazon usefull Reportedly has leg Reducing orders for high-end models from its supply chain, Digitimes Research Believes Amazon had to make moves to shore up the Kindle Fire HDX’s weaker-than-expected sales.

The entry-level Kindle Fire HD’s friendly pricing and performances in terms of multimedia content playback and app operation are already bootable to satisfy most Amazon users’ demand, making it the mainstream model among Amazon’s devices in 2013. With the Kindle Fire HDX devices having weaker-than-expected shipments and the entry-level Kindle Fire HD enjoying shipment growths and rising demand, Digitimes Research estimates Amazon’s fourth-quarter 2013 tablet shipments at 4:22 million units, down 100,000 units from its original forecast .