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Struggling Sales Lead to $30 Price Cut on Kindle Fire

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The Amazon Kindle Fire did quite well for itself during the holiday shopping season, shipping about 4.8 million units during that period. Now, sales have slowed and Amazon has responded by slashing the price on its Android-powered tablet e-reader.

Shipments for the first quarter of 2012 slipped all the way down to just 700,000 units, which is a mere fraction of what Amazon enjoyed during Q4 of last year. Naturally, a big part of this has to do with holiday gift buying, but Amazon still wants to sell as many of these puppies as it can. And that’s why several Amazon local deals are popping up with $30 off coupons, bringing the price of the Kindle Fire down to just $169.

Of course, Amazon isn’t really out to make money from the hardware; they’re in the business of selling you content for that e-reading tablet. So, should Amazon need to compete with a $199 Google Nexus 7 tablet, I wouldn’t be surprised if the online e-tailer giant decided to slash prices even further. My fingers are crossed for a $99 Kindle Fire, but I think a $149 semi-permanent price point could prove likely.

[Source]

About Michael Kwan

A freelance writer and tech geek from Vancouver. Find me at michaelkwan.com and follow me on Twitter @michaelkwan.

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  • Jesslyn Hendrix

    Your conclusion makes no sense.  The price is going down to get rid of excess stock ahead of the announcement(s) of a) a new model and b) imminent new arrivals by the competition

    • http://twitter.com/bryanilee2 Bryan Lee

      Yup.  And others have reported that while the shipments may have gone down, sales haven’t dropped nearly as much.  Another report estimated that the Kindle Fire had grown its percentage share of the Android tablet market to 54% at least through February.  I’ll bet when the 2Q numbers come out, we’ll find out that the Kindle Fire actually sold just fine.

  • http://twitter.com/bryanilee2 Bryan Lee

    “… I think a $149 semi-permanent price point could prove likely…”  Well, I don’t think there are any semi-permanent price points in the tech world.  What you can sell for $200 today better be priced at $125 next year.

    • http://michaelkwan.com Michael Kwan

      That’s very true. There’s probably a second-gen Kindle Fire in the works that would bump this first-gen model even further.