Kindle Fire Outsells IPad at Best Buy

Amazon's Kindle Fire is the best-selling tablet at Best Buy, showing its quick rise in an iPad-dominated market.

Apple's four iPad models hold spots two through five on Best Buy's self-reported list, so it's likely still grabbing a bigger share of overall sales. However, the Fire sits squarely on top of the pile as holiday sales heat up, proving Amazon's strategy to offer a competitive tablet at an affordable price is off to a strong start.

Amazon's entry into the tablet market may appeal to consumers for a variety of reasons. It sells for just $200, less than half the cost of an entry-level iPad 2, drawing in budget-conscious customers who would love the functionality of a tablet but not the high price tag of an Apple device.

Consumers may also gravitate to Kindle Fire due to Amazon's reputation as an experienced provider of books, movies and media. Amazon sweetened the deal with a trial subscription to Amazon Prime, which allows Kindle Fire users to stream movies and television shows and access thousands of e-books for a subscription fee of $80 a year.

The company is banking on Prime subscriptions from Kindle Fire owners to subsidize the low price of the device.

Apple has its App Store, which averaged more than 80 app downloads per iPhone, iPad or iPod Touch user this year. However, Apple users download and pay for apps one at a time, while Amazon's annual subscription fee is revenue generated regardless of how much users download or watch.

This financial model may help the company keep sales streaming in as today's Kindle Fire buyers look for ways to enjoy the device in months to come.

The Kindle Fire kicked off the holiday season by breaking Amazon's Black Friday sales records, setting up strong sales momentum and outselling the iPad 2 at Best Buy, Target and other retailers.

The iPad is also selling in huge numbers as expected, but the Kindle Fire has managed to achieve success where others have failed, breaking out of the pattern cast by other Android tablets like the Samsung Galaxy Tab and HP's TouchPad, to become the most promising iPad contender to date.

Criticism concerning Amazon's tablet, such as charges its Silk Web browser is insecure and its screen too small, may hold some back some potential buyers, but don't appear to be dampening current sales.

As Amazon works to refine and improve its Kindle line next year, possibly adding a larger 10-inch screen and fixing browser security issues, it may cement its place as a solid iPad contender.

Kindle Fire Outsells IPad at Best Buy originally appeared at Mobiledia on Fri Dec 02, 2011 2:30 pm.

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