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IHS: Kindle Fire Set to Challenge iPad

2 Dec, 2011 By: Chris Tribbey

Kindle Fire

After two weeks in the market Amazon’s Kindle Fire is set to surpass every other rival to Apple’s iPad, according to projections from IHS iSuppli.

Nearly 4 million Fire tablets will be shipped by the end of the year, giving Amazon a 13.8% market share in fourth-quarter tablet shipments, second to Apple’s commanding 65.6% market share, but more than the 4.8% held by No. 3 Samsung.

“Nearly two years after Apple rolled out the iPad, a competitor has finally developed an alternative, which looks like it might have enough of Apple’s secret sauce to succeed,” said Rhoda Alexander, senior manager of tablet and monitor research for IHS. “Initial market response strongly suggests that Amazon, with the Kindle Fire, has found the right combination of savvy pricing, astute marketing, accessible content and an appropriate business model, positioning the Kindle Fire to appeal to a brand-new set of media tablet buyers.”

Global tablet shipments should hit 64.7 million in 2011, a 273% growth from the 17.4 million shipped in 2010. By 2015, shipments should surpass 287.2 million, the research firm predicts.

Fire’s success is due to its price — $199 — and Amazon’s inclusion of one month of Amazon Prime content, IHS points out.

Meanwhile, Apple may reduce the price of the iPad 2 to help keep its dominant market share, IHS suggests.

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