Market Overview

Amazon Poses Unforeseen Threat to Apple as Kindle Fire Sells Out

Amazon (NASDAQ: AMZN) has announced that the first-generation Kindle Fire has completely sold out, garnering 22 percent of the tablet market in the United States.

"We're grateful to the millions of customers who have made Kindle Fire the most successful product launch in the history of Amazon," Jeff Bezos, Amazon.com Founder and CEO, said in a company release.

"This has been a big year for digital products on Amazon -- all of the top 10 sellers on Amazon.com since Kindle Fire launched just less than a year ago are digital products. Kindle Fire is sold out, but we have an exciting roadmap ahead -- we will continue to offer our customers the best hardware, the best prices, the best customer service, the best cross-platform interoperability, and the best content ecosystem."

Bezos' comments are a hint at Amazon's near-term plans. The company is expected to introduce the Kindle Fire 2 (and possibly other new tablets) during a media presentation scheduled for September 6. The event occurs just one day after Nokia (NYSE: NOK) plans to announce a device that will change everything.

On September 12, Apple (NASDAQ: AAPL) is holding a major press event to unveil the next-generation iPhone. It has been widely speculated that Apple will use the event to announce the rumored iPad Mini as well, but some analysts disagree with this assessment.

"I'm not sure it makes sense to come out with [both of] those on the same meeting," James D. Ragan, the Senior Equity Analyst with Crowell, Weedon & Co., told Benzinga this month. "I think it steals the thunder from either one of them."

Even without the iPad Mini, Amazon is under pressure to release another tablet. In July, Google (NASDAQ: GOOG) unveiled the Nexus 7, the company's first tablet. The device retails for the same price as the Kindle Fire, $199, but features superior specifications.

Follow me @LouisBedigianBZ

Posted-In: Amazon Apple Google Jeff Bezos Kindle FireNews Success Stories Tech Best of Benzinga

 

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