Apple Saw No Change in iPad Sales Following Kindle Fire Introduction

[heisetax]

Well thanks! I guess I didn't consider shopping at Walmart automatically made me a low quality person, but now I do. So any other people out there brave enough to admit shopping at Walmart? Come on there has to be at least one other person on here.

Question what exactly is the difference between an iPad bought at Walmart and an iPad bought in an Apple Store? Just curious.

Apple makes a bigger percentage of sales price on tose sold at the Apple Store. We won't say profit as Apple has the costs of the Apple store to take away from the higher income percentage. But higher income is still there.

 

[Mac.World]

Kindle Fire likely sold about 10% of what Apple sold in Q4 and then factor in a 13-20% return rate on the Fire and the result is less than spectacular; and likely why Apple felt no effect from the Fire. In fact, Apple didn't feel any heat at all. The Fire is a dud in Apple's world, but a huge seller in the Android world.

 

[Rodimus Prime]

Kindle Fire likely sold about 10% of what Apple sold in Q4 and then factor in a 13-20% return rate on the Fire and the result is less than spectacular; and likely why Apple felt no effect from the Fire. In fact, Apple didn't feel any heat at all. The Fire is a dud in Apple's world, but a huge seller in the Android world.

You know that no one has any site of those return rates. The only result I have found from it are from companies trying to make head lines with doom and gloom.

 

[WilliamG]

Kindle Fire likely sold about 10% of what Apple sold in Q4 and then factor in a 13-20% return rate on the Fire and the result is less than spectacular; and likely why Apple felt no effect from the Fire. In fact, Apple didn't feel any heat at all. The Fire is a dud in Apple's world, but a huge seller in the Android world.

Those are very interesting numbers. Got any sources to back them up?

 

[Lochias]

Indeed, who is to say?

Well, iPad sales rate is rapidly increasing, so it's hard to say if there is no effect from Fire tablets. There HAS to be some amount of people who bought a Fire instead of an iPad. That amount wasn't large enough to cause Apple to sell fewer iPads, clearly they still sold a ton, but who is to say they couldn't have sold some amount more, had the Fire not been in the market? You're telling me not one of the millions of Fire owners would not have bought an iPad instead, if the Fire didn't exist? I don't believe it.

The context was an analyst's question, did the Kindle Fire in fact increase iPad sales? His anecdote was about people trying out the Fire, rejecting it, and buying an iPad that they might otherwise not have bought.

Peter Cook replied that Apple had no evidence of any effect whatever, plus or minus, on iPad sales, across the November 15 release date of the Fire.

 

[Abazigal]

Well, iPad sales rate is rapidly increasing, so it's hard to say if there is no effect from Fire tablets. There HAS to be some amount of people who bought a Fire instead of an iPad. That amount wasn't large enough to cause Apple to sell fewer iPads, clearly they still sold a ton, but who is to say they couldn't have sold some amount more, had the Fire not been in the market? You're telling me not one of the millions of Fire owners would not have bought an iPad instead, if the Fire didn't exist? I don't believe it.

I think you are grasping at straws here. Even if the fire did end up stealing some customers away from the ipad, the OP's point is likely that it is an insignificant number when viewed in context of the millions of units sold.

What, were you expecting the article to say "Kindle stole 100 customers away from apple?" I am sure that would be a real disaster...

 

[thekeyring]

If the iPad was not counted as a tablet, I wouldn't want a tablet. They're rubbish. I see adverts for Virus protection software here that say "We also protect your Android phone" - really? Android needs protection from viruses? It's like Windows vs Mac all over again.

 

[rhinosrcool]

The context was an analyst's question, did the Kindle Fire in fact increase iPad sales? His anecdote was about people trying out the Fire, rejecting it, and buying an iPad that they might otherwise not have bought.

Peter Cook replied that Apple had no evidence of any effect whatever, plus or minus, on iPad sales, across the November 15 release date of the Fire.

Tim

For $199, the Kindle Fire is a fine device. Also, for night reading, it's easier to hold.

At this point, even though they are vastly different devices, there is little conclusive evidence that the Fire will or won't cut into iPad sales.

Too, another iteration of the Fire could change things, as well.

For cost conscious consumers (like myself), the Fire's price point is nice. It's not lost on Apple. Even with a price cut, Apple can still have good margins. Maybe Apple will respond in kind, we'll see...

 

[usptact]

What I don't get is that people often look and compare and fight and kill to select a good house where they are supposed to live, a car which they will drive every day, wife to live... but they still buy Acers and other crap that they are using every day!
The same is with Tablets. I got my hands on many different products and no one came close in ergonomy, technical features and elegance as Apple iPad.

 

[mazz0]

no surprise. apple doesnt go after low-quality, price-conscious, walmart-loving consumers

I would just like to express my pleasure that a significant number of MacRumours readers down-vated this.

The Kindle will even increase iPad sales: a lot of the people who try one—or even buy one—will end up wanting more. The Kindle will become a hand-me-down and they’ll get an iPad next time.

Yeah, but their Android apps (assuming there are any) won't work. I think once people have bought into one ecosystem they'll be reluctant to leave.

That said, and also in answer to the suggestion that the number of apps available is a big plus point of the iPad - I don't find the apps for iPad nearly as useful as for iPhone, because webpages are so good on it. The killer app for iPad is Safari, most of my others barely get any use. Shame Safari crashes so much in iOS5

 

[vrDrew]

Yeah, but their Android apps (assuming there are any) won't work. I think once people have bought into one ecosystem they'll be reluctant to leave.

That might be true, but the fact of the matter is that the paucity of quality Apps has made the whole concept of an Android "ecosystem" somewhat of a joke.

Android simply isn't that "sticky" - in the same way that Windows was "sticky", or that iOS is turning out to be. I'll also note, in passing, that this lack of "stickiness" was what has turned out to be so fatal to Symbian and Blackberry: High rates of adoption (i.e.. lots of handsets sold) but a low rate of utilization (people using their smartphone to access a lot of data services.)

When an Android users total investment in the "ecosystem" is downloading a few free games; screen savers, Pandora, etc. - then there isn't a whole lot keeping him from jumping ship when his phone contract is up.

 

[leroypants]

I will admit I stopped shopping at Walmart. Corporate policies mostly, but I will also admit the one near me is a good example of why people mock those that shop at Walmart. No interest in setting foot in there, again.

I love when people complain about walmarts corporate policies yet have no problem with Apple and the way it's manufacturers treat their workers.

 

[GunZi]

well im getting my first ipad this year, isn't the kindle US only?

 

[tjcampbell]

I love my Kindle, but you couldn't get me near a Fire.

 

[*LTD*]

And that has what to do with what I said. Are we going to now have to deal with you posting crap like that for the next few months.
If apple was not scared then why this endless string of lawsuits

Because they CAN. They have the time, money, resources, and support to champion what they believe are their interests.

 

[TMay]

For myself, I probably could scrimp and save over a couple of years and buy myself a BMW M5, regrettably still with payments. I wouldn't because I'm quite happy driving much older stuff. People priortize their purchases.

One thing that I like about Apple products is that even the least expensive iPod is still the exact same product that a Wall Street broker might purchase and enjoy. It is an inexpensive product that qualifies as a luxury item.

Similarly, the iPhone and iPad, while quite a bit more expensive than the iPod, are top tier products that are within reach of the masses. Having not used an Amazon Kindle Fire, I can't speak of its capabilities first hand, but I would say the Kindle draw is as much the Amazon ecosystem as the device, which frankly is a clone of existing products not competing directly with the iPad.

There may be some sales lost to the Amazon Fire, and Apple surely has contingencies planned if the market deems it, but I would find that a similar strategy to the iPhone of selling current and past generations with pricing differentials would be quite likely to be very effective at maintaining both sales volume and margins without the subsidy model that Amazon appears to be successful with, and I believe that Apple will be very successful pursuing this.

 

[freddiecable]

if that is the case - apple should be worried. in sweden we have say: "arrogance before fall".

They know they'er the greatest.

 

[Bleihoff]

I own both an iPad and a Kindle Fire. Bought the Fire out of curiosity more than anything else. Prefer the iPad over the Fire for almost everything. Not being able to access media products from overseas with the Fire is a major drawback for me. Form factor and weight of the Fire also leave much to be desired. Still, for the money, if you live in the US and are not looking for the functionality of the iPad, the Fire is not bad.

 

[whoathere]

Not surprised.

 

[gnasher729]

Well, iPad sales rate is rapidly increasing, so it's hard to say if there is no effect from Fire tablets. There HAS to be some amount of people who bought a Fire instead of an iPad. That amount wasn't large enough to cause Apple to sell fewer iPads, clearly they still sold a ton, but who is to say they couldn't have sold some amount more, had the Fire not been in the market? You're telling me not one of the millions of Fire owners would not have bought an iPad instead, if the Fire didn't exist? I don't believe it.

Obviously true (why does anyone rate this down???). Someone who only wants the features of the Kindle Fire, but has enough money to buy an iPad even though it does a lot more than needed, could have easily switched.

On the other hand, there will be people who never looked at the iPad because of the $499 price, looked at the Kindle Fire with the $199, liked it reasonably well, and _then_ started looking for alternatives, ending up buying an iPad.

 

[calev]

I feel like apple has really lost its soul since steve died. Who cares what time cook says? im switching to windows.

 

[Plutonius]

I'm wondering if the Fire ate into iPod Touch sales ?

 

[Rogifan]

What I don't get is that people often look and compare and fight and kill to select a good house where they are supposed to live, a car which they will drive every day, wife to live... but they still buy Acers and other crap that they are using every day!
The same is with Tablets. I got my hands on many different products and no one came close in ergonomy, technical features and elegance as Apple iPad.

obviously in the grand scheme of things function is more important than form but every day people make purchases based on the look and feel of something. When I got my iPad 2 and showed it off to friends who had iPad 1 the first thing them commented on was the look of it; how much thinner it was. And lamented the fact that the smart cover didn't work with their iPad. I'd say Apple does a better job thwn just about anyone of bring to mass market products that have great form AND function. Their products look great and just work. People will pay a premium for that and for knowing there was a lot of care that went into making their product.

 

[Plutonius]

I feel like apple has really lost its soul since steve died. Who cares what time cook says? im switching to windows.

Unless a company is paying you or you are a stockholder, buy what you like. If you like Windows, use Windows.

Tim Cook's job is to increase profits and share prices. He is doing a great job so far.

 

[JesseFogarty]

People just need to learn to save the money they make; then we wouldn't have Fandroids etc that only ride the bandwagon because it's all they have. <3

In my opinion iPhone 4S > Kindle Fire