Amazon Tablet Could Easily Sell “3 Million to 5 Million Units”

Amazon is rumored to be releasing an iPad competitor sometime soon, and while their only current in-house gadget is the Kindle, many analysts expect their touch-screen offering to be a potential “iPad Killer”. It’s unlikely that any rival will be able to dethrone Apple completely, but Amazon does have enough weight to disrupt Cupertino’s marketshare more so than any other competitor to date.

Forrester Research believes that Amazon will be able to sell “3 million to 5 million units in Q4 alone“—millions more than the iPad did in its first quarter—since Amazon is willing to sell hardware at a loss. Amazon hasn’t yet made an official announcement regarding their tablet, but it is expected to be released late 2011.

  • So far, non-iPad tablets have been like residents of a “roach motel” — they go in (to the channel), but they don’t come out.
  • Not only does Amazon have the potential to gain share quickly but its willingness to sell hardware at a loss, as it did with the Kindle, makes Amazon a nasty competitor.
  • Apple sells software and services, but the lion’s share of Apple’s revenue still comes from hardware, which makes it vulnerable to a company, such as Amazon, that isn’t seeking profit from hardware sales.
  • If product strategists at OEMs such as Acer, Lenovo, and Toshiba see Amazon tablets flying off the shelves, they’ll want to make one, too.
  • A year from now, “Amazon” will be synonymous with “Android” on tablets.
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