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Kindle and Kindle Fire shipments slumped in the first quarter. Kindle Fire shipments were hit especially hard, down to ~700k from 4.75 million the quarter before, according to IDC. Kindle e-reader sales fell to an estimated 1.75 million, according to an analysis in Seeking Alpha. Sales may have been hurt by the release of Apple’s new iPad. The Kindle Fire may also have changed customer expectations for an e-reader, dampening sales of the regular Kindle, while not being strong enough to take share from the iPad.
However, two pieces of news today may overshadow those poor numbers and point to Amazon’s potential strength in mobile. First, Amazon is going to start selling a prepaid wireless service in Japan, which may presage the much rumoured Amazon Phone. Second, a report in AdAge indicates that Amazon is gearing up to make a big push in mobile advertising, where we have previously argued they are well-positioned.
Photo: news reports, BII estimates
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