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Amazon Tablet Market Share Surges, Thanks To Its Low-Cost Slates

15 March 2016

From Investors Business Daily:

Amazon.com jumped to No. 3 in the global tablet market during the fourth quarter, thanks to its lineup of low-cost slates, led by the $50 Fire tablet.

In Q4, Amazon shipped 5 million tablets, accounting for 11.5% of the total market. In the year-earlier quarter, Amazon shipped just 1.5 million tablets, accounting for 2.9% of the market, ABI Research reported Monday. Amazon’s tablet shipments soared 233% in Q4 vs. Q4 2014.

“Unlike other tablet manufacturers, Amazon views hardware as a commodity and emphasizes focus on its recurring digital content revenue stream, generated from selling digital books, music, TV and video programming to owners of its devices,” ABI analyst Jeff Orr said in a statement. “The incredibly low pricing of the Fire Tablet is a smart and strategic move, as few others can afford to accept a lower margin on their tablet devices in favor of driving a surplus of content-related revenues.”

. . . .

So far, the leading tablet vendors haven’t followed Amazon by drastically lowering their tablet prices.

“Most tablet vendors continue to take a wait-and-see approach to Amazon’s Fire Tablet release,” Orr said. “It’s a path only few can follow, as vendors without content distribution rights and value-added services can only rely on the transaction price of their hardware to stay in business.

“For instance, LeEco, formerly LeTV, in China is attempting a similar model. Conversely, content owners may find value in broadening their ecosystems by striking relationships with tablet vendors to get their programming in front of more users.”

Link to the rest at Investors Business Daily

Amazon, Tablets/Ereaders

3 Comments to “Amazon Tablet Market Share Surges, Thanks To Its Low-Cost Slates”

  1. This reinforces my thoughts on the Amazon Fire Phone. Instead of trying to come up with nifty 3D viewing gimmicks, they should’ve tried to create a full-featured Android phone that they could sell for $99 and “just” lose $50 to $100 per phone (until they got the prices down). Or ship them free with a 3-year Prime subscription.

    Go for volume and the low end of the market to grab share and get people using their scanning app. Instead, they tried to make something premium. Should’ve gone the other way.

  2. > should’ve tried to create a full-featured Android phone

    I don’t see how they can possibly do this as long as they continue to use their forked version of Android. To my mind, there’s no way an Android device that’s incompatible with the Google Play store could ever possibly be “full-featured.” Though the biggest complaint I remember reading WRT to the Fire Phone fiasco was battery life. Apparently they couldn’t even go a full workday before dying, even with light usage.

    Having said the above, for $50 I’d probably be willing to give up some Apps for cheap tablet, next time I’m in the market for one. My limited sense is that these Fire Tablets can also be rooted and made compatible w/vanilla Android…something I presently have no idea how to do. But if I’m gonna brick something, I’d rather it be a $50 tablet than anything expensive.

    • > To my mind, there’s no way an Android device that’s incompatible with the Google Play store could ever possibly be “full-featured.”

      It’s actually not incompatible with the Google Play store, they just choose not to ship all the Google required apps, so their devices will not pass Google’s certification process to be allowed to ship the Google Play Store App.

      People who sideload the Google Play Store App from elsewhere have no trouble running it.

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