26% of Amazon Kindle Fire buyers delaying purchase of Apple's iPad

Posted:
in iPad edited January 2014
A new survey of customers who plan to buy Amazon's Kindle Fire touchscreen tablet found that 26 percent of those said the product has prompted them to delay or put on hold a purchase of Apple's iPad.



The survey, conducted by ChangeWave and RBC Capital Markets, also indicated that the Kindle Fire has more pent-up demand ahead of its Nov. 16 launch than the iPad 2 had earlier this year. Hype for Amazon's new tablet with a color screen is said to be driven by the device's low $199 starting price, or less than half of the entry-level $499 iPad 2.



The results come from a poll of 2,600 respondents conducted in October, and show that 5 percent of respondents said they have already preordered a Kindle Fire or are "very likely" to purchase soon. Prior to the iPad 2 launch, 4 percent of respondents said they were "very likely" to buy Apple's second-generation tablet.



Analyst Mike Abramsky said the survey suggest that the launch of the Kindle Fire could present a near-term risk for Apple, as more than a quarter of those buying Amazon's tablet indicated they chose it over the iPad. However, Abramsky also remains optimistic on Apple and its iPad lineup going forward, as he believes there is room for both Apple's tablet and Amazon's to grow.



Any sustained uptake for the Kindle Fire will depend on continued "buzz" and positive reactions after the device becomes available next week. But once the hype dies down, Abramsky believes there are enough unique features with Apple's iPad platform that will allow it to retain leadership in the tablet market.



Specifically, the analyst offered a list of four ways in which the iPad differs from the competition: Apple's ecosystem and the large amount of content available on the App Store and in iTunes; the iOS user experience; a larger display, 3G connectivity and cameras make the iPad a true "post-PC" device when compared with the Kindle Fire; and Apple's expansive global distribution places the iPad in 90 countries, versus the Kindle Fire's online-only availability.







Abramsky has maintained an "outperform" rating for AAPL stock with a price target of $500 in the face of any near-term "valuation volatility." He believes that Apple's key franchises in the iPad, iPhone and Mac are "large, defensible and underpenetrated, with significant growth drivers ahead."



Looking forward, he sees Apple selling 50 million iPad units in the company's 2012 fiscal year, representing 54 percent year over year growth. And in the 2013 fiscal year, he sees iPad sales growing another 30 percent to hit 65 million.
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Comments

  • Reply 1 of 72
    Wonder how many people cancelled their Kindle Fire order after the initial hype died down.
  • Reply 2 of 72
    They're delaying purchase of the IPad 2 until (1) they can return their Kindle Fire once they realize what a piece of crap it is or (2) they get that long-awaited raise to be able to afford an iPad 2.
  • Reply 3 of 72
    Keeping in mind that there are a number of use scenarios that justify buying the Fire, it still is more closed than the iPad/iOS platform, is oriented primarily towards Amazon's products and services, and running forked Android. This means that Amazon will have to maintain the OS, drive as much app commonality with Android as they can, while curating app delivery. They are using the platform as a loss-leader to drive expansion of their products and services. And after all these are folks who are PLANNING to buy the Fire, not ones who own one or are familiar with the platform. So this is essentially marketing analysis and speculation. It remains to be seen what the actual uptake numbers represent, and whether the Fire becomes the most (ironically) popular tabbie to date.
  • Reply 4 of 72
    cmvsmcmvsm Posts: 204member
    7" form factor is too small with the growing screen size of the smart phone. I thought that I might actually like it, but it looked cumbersome on the commercials if you were doing anything outside of reading an online book.



    Jobs and Ive knew what they were doing when they picked the 10 inch. I think that its the minimum form factor for average sized hands to be able to manipulate a virtual device.



    After the hype dies down, the Fire will reduce to a color reader with advantages, but will most likely never be a stand alone device for more intense applications. The response of the development community is still in question as well.
  • Reply 5 of 72
    So people who may have "wanted" an iPad before, but couldn't/wouldn't pay the $499+ for what ever reason are now saying they "delayed/put on hold" (same thing, right?) their decision on buying an iPad?



    Hey, I would love a Lotus Elise, but I just saw a 2012 Nissan 370Z Coupe, and it does some of the same things, it's a car just like the Lotus is a car, and is about a 1/3 the price, so I have "delayed" my decision on the Lotus...



    ...that I wasn't really going to buy any time soon, anyway...
  • Reply 6 of 72
    so 26% of buyers consider it a cheaper, good enough for now alternative to ipad2? that sounds about right and i wouldve assumed more. wait til holiday shopping kicks in and sales on these new "enhanced e-readers" start increasing. between the new, less expensive & more competitive offerings from manufacturers, coupled with the ipad2's position in its life cycle during peak shopping season, apple may lose out quite a bit. but do they care about that segment? i dont think so.
  • Reply 7 of 72
    The Fire and Nook tablets will take a bunch of share from Apple. I'm considering one, since I use my iPad primarily for reading. Yeah, I have a keyboard and all that for the iPad, but mostly I just do reading.



    I have tons of games, but don't play them much. I read. I read. I read.



    Amazon and Barnes and Noble will take a good chunk of share from Apple.



    Yes, they are different types of devices, but a lot of people just want to read. The iPad does get heavy after a while.



    Who cares if Android is forked and Amazon has to "maintain" Android. BN, too. So what?



    The Nook is a fine device. The Fire will be a fine device. And the Nook tablet will be a fine device. All will have good sales.



    End of story. Thanks.



    Except, did you see the price of the 7" tablets? Nice. Very nice. Again, Apple will lose share. No one wants to pay $500 to read.



    P
  • Reply 8 of 72
    Quote:
    Originally Posted by ham_bone View Post


    so 26% of buyers consider it a cheaper, good enough for now alternative to ipad2? that sounds about right and i wouldve assumed more. wait til holiday shopping kicks in and sales on these new "enhanced e-readers" start increasing. between the new, less expensive & more competitive offerings from manufacturers, coupled with the ipad2's position in its life cycle during peak shopping season, apple may lose out quite a bit. but do they care about that segment? i dont think so.



    Apple should care and lower the price of the iPad. Price sensitivity. What will the market bear?
  • Reply 9 of 72
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by patrickf View Post


    The Fire and Nook tablets will take a bunch of share from Apple.



    I'm not sure about that.



    I don't doubt that they'll sell well, but I wonder how many of their purchasers would have otherwise bought an iPad. I'll bet the number is fairly small - they're just too different to be directly competing.
  • Reply 10 of 72
    Quote:
    Originally Posted by AppleInsider View Post


    Hype for Amazon's new tablet with a color screen is said to be driven



    I think the word 'hype' is misused with respect to Apple quite frequently, but in this case I think you're misusing it with respect to Amazon. "Hype" is short for hyperbole, or gross exaggeration. I don't think there's any hype at all with respect to the Kindle Fire. There's genuine excitement about it because it really is inexpensive. In the same way, I don't think there's a lot of hype about Apple products, because I think Apple's products really are heads and tails above the competition.
  • Reply 11 of 72
    Quote:
    Originally Posted by cmvsm View Post


    7" form factor is too small with the growing screen size of the smart phone. I thought that I might actually like it, but it looked cumbersome on the commercials if you were doing anything outside of reading an online book.



    Jobs and Ive knew what they were doing when they picked the 10 inch. I think that its the minimum form factor for average sized hands to be able to manipulate a virtual device.



    After the hype dies down, the Fire will reduce to a color reader with advantages, but will most likely never be a stand alone device for more intense applications. The response of the development community is still in question as well.



    7" is not too small for a lot of people who want to read. That's all they primarily want to do. Other apps will run fine, too.



    Have you tried a Nook color? It's pretty nice. It's really nice. The 7" tablets will do well and take all the share from people who primarily want to read and don't have the big bucks for an iPad. Yes, I have an iPad, and an iPhone and I just bought a MacBook Pro. And my iPad is probably best for what I do.
  • Reply 12 of 72
    addaboxaddabox Posts: 12,660member
    I think we're still in the "learning period" for what a tablet should be, for most people.



    If you've never owned a tablet, you may be in the market for a big smart phone with better media performance. Email, browser, photos, movies and music, books, games (one or two of the currently most popular). Done. If that's all you'd ever want then a Fire would probably be a great choice, certainly an economical choice.



    Apple, of course, is pushing the iPad towards laptop replacement territory. If you're trying to get by without a laptop on your next trip, the Fire would probably be frustrating.



    As tablets become more ubiquitous, and the pool of potential buyers become more sophisticated about what a tablet can potentially do, I think somewhat limited devices will be a harder sell, even at low price points. No one buys a media laptop thinking that they might need to get a fully featured laptop to go along with it at some point, but that's because years of use have educated the buyer about what a laptop "ought" to do.
  • Reply 13 of 72
    Quote:
    Originally Posted by patrickf View Post


    The Fire and Nook tablets will take a bunch of share from Apple. I'm considering one, since I use my iPad primarily for reading. Yeah, I have a keyboard and all that for the iPad, but mostly I just do reading.



    I have tons of games, but don't play them much. I read. I read. I read.



    Amazon and Barnes and Noble will take a good chunk of share from Apple.



    Yes, they are different types of devices, but a lot of people just want to read. The iPad does get heavy after a while.



    Who cares if Android is forked and Amazon has to "maintain" Android. BN, too. So what?



    The Nook is a fine device. The Fire will be a fine device. And the Nook tablet will be a fine device. All will have good sales.



    End of story. Thanks.



    Except, did you see the price of the 7" tablets? Nice. Very nice. Again, Apple will lose share. No one wants to pay $500 to read.



    P



    I couldn't agree more. People outside the Apple realm are having a hard time with the economy. People want something budget friendly and gets the job done. Though cheaper doesn't alwasy equal quality. This is still a Kindle we are talking about these things sell themselves by name alone. Apple definitely won't go under overnight by the sale of the Fire but it will take notice. I hope the Fire does well because competition is good. I'm not talking about all the wannabe Android crap tablets out there. Kindle...enough said. I use my iPad to read my books but I know my wife really wants a Kindle for Christmas and this will do nicely. I wish I could see it firsthand before purchasing it.
  • Reply 14 of 72
    How many of these are current Kindle owners who were considering taking the upgrade to the iPad? I was a kindle owner before I bought my iPad 2. It stands to reason that they might want to stay in the same device family now that there is more offered that is iPad like.



    I still don't think Apple has anything to sweat about, but I do believe amongst kindle owners the fire will be hot.
  • Reply 15 of 72
    It appears as though Apple is about to be put out of business by Amazon. Of course, all this has already been predicted by Wall Street. Sell hardware at a huge loss and make it up in volume and content. It's a strategy that is preferred by Wall Street and that's why Amazon is allowed such a high P/E ratio. The strategy seems to please consumers and investors alike. Wall Street reasons that consumers are willing to overlook poor quality and bad customer service as long as the initial cost is low enough. $199 vs $499 points to every Tom, Dick and Mary in the U.S. will be buying Kindle Fires as stocking stuffers this Christmas. Jeff Bezos is a marketing genius.
  • Reply 16 of 72
    If an iPad2-look-ahead-buyer chooses a Kindle Fire over an iPad2 just because of 150 saved bucks (an iPad1 is avaiable for 350$ and lower, still having better specs than the Fire) then 'we' don't need such customers in our ecosystem.



    What is a pennysaver like this planning to spend on apps, music, movies ? Probably nothing and he is just going to surf the web, read mail or watch youtube. He'll probably not even buy any accessories.



    Meanwhile I sure have spent several hundred dollars on apps and accessories on my iPad/iPhone/iTouch family ecosystem.



    Pennysavers who divert to a Kindle Fire, would probably never have bought an AppleTV or extend their setup with an iPhone/iTouch where they could use all their app and media purchases without additional cost. I don't buy the message, that people like these really would have bought an iPad in the end, also if there was no Kindle Fire.



    By all means, that Fire 'tablet' is not even close to an iPad, neither hardware specs nor software to run on it. Sounds like 'Folks who earlier planned to buy a Mercedes now plan to buy a Honda' - how serious is that ?



    My only explanation is that these 26% folks are absolute newcomers who don't have a clue what a tablet is and what to do with it. They just see a rectangled, flat piece of glass and now they discovered a cheaper rectangled, flat piece of glass to touch on.



    Especially these folks will be turned away when they experience the user interface of an Android-based tablet and see how much more easier everything is on an iPad. They'll recognize the missing camera, missing 3G, slow speed and the omnipresence of a big retail shop trying to sell them weird stuff every day.



    ...and in November 2012 the'll put their 'Fire' on ebay and realize nobody wants to pay them just even 30$ for it... and realize that they would not have lost 170$ if they'd bought an iPad2 and sold it 12 months later.



    So what Apple should NOT do is trying to compete on these levels! There are enough still fresh iPad1's around which should be a great offer. Who still chooses a Fire, doesn't want a Post-PC but just wants a cheap media player... which is okay, but a different product.



    Apple is playing a highly vertical game with follow-up purchases. Who just wants to consume free content - which is either stolen or worthless - is no Apple buyer, not even a potential one.
  • Reply 17 of 72
    bsenkabsenka Posts: 799member
    Quote:
    Originally Posted by patrickf View Post


    7" is not too small for a lot of people who want to read. That's all they primarily want to do. Other apps will run fine, too.



    Have you tried a Nook color? It's pretty nice. It's really nice. The 7" tablets will do well and take all the share from people who primarily want to read and don't have the big bucks for an iPad. Yes, I have an iPad, and an iPhone and I just bought a MacBook Pro. And my iPad is probably best for what I do.



    Agreed. I have an iPhone, an iPad, a Macbook, and a 7" Android tablet. Those Apple devices are great at a lot of things, but when I want to read, I use the 7" tablet. If Apple made a 7" iPad, it would sell very well.
  • Reply 18 of 72
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by starbird73 View Post


    So people who may have "wanted" an iPad before, but couldn't/wouldn't pay the $499+ for what ever reason are now saying they "delayed/put on hold" (same thing, right?) their decision on buying an iPad?



    Hey, I would love a Lotus Elise, but I just saw a 2012 Nissan 370Z Coupe, and it does some of the same things, it's a car just like the Lotus is a car, and is about a 1/3 the price, so I have "delayed" my decision on the Lotus...



    ...that I wasn't really going to buy any time soon, anyway...



    That's my take on the interest of this budget tablet. These simply weren't likely to buy the iPad in the first place.



    However, I still contend that the Kindle Fire could be a good enough multimedia and web-browsing device that those that like the Kindle Fire might later decide that investing $500 in a 10", fully-equiped tablet for their next tablet purchase.
  • Reply 19 of 72
    Quote:
    Originally Posted by patrickf View Post


    The Fire and Nook tablets will take a bunch of share from Apple. I'm considering one, since I use my iPad primarily for reading.



    For someone who plans on primarily reading, the fire seems like a mediocre choice and no improvement over an iPad. If I did a ton of reading and wanted the optimal device for that, the cheaper black and white kindles are much better for the task.



    I'm sure the Fire will do fine but it will likely be more based on budget than people heavy into reading. And even if it is a huge seller, if it's true that Amazon is making very little on it or even losing money, I'm not convinced that's a win for them and something they can sustain.



    Quote:
    Originally Posted by patrickf View Post


    Apple should care and lower the price of the iPad. Price sensitivity. What will the market bear?



    The most obvious option for Apple is probably to keep the iPad 2 at a lower price when the 3 ships. If they can come close, there's little reason to get a Fire. Also, if it's a decent seller they could make a 7 inch tablet with basic specs but still better than the Fire at a competitive price. Just look at the iPod Touch, it beats the Fire in a number of ways - if they just shipped that hardware with a seven inch screen that would be a better option for many users.
  • Reply 20 of 72
    Quote:
    Originally Posted by minderbinder View Post


    For someone who plans on primarily reading, the fire seems like a mediocre choice and no improvement over an iPad. If I did a ton of reading and wanted the optimal device for that, the cheaper black and white kindles are much better for the task.



    Black/White readers are not good for PDFs. Provided the 7" tablets have pinch and zoom...that's where they will excel.
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