An Amazon spokesperson has said that the company’s Kindle product line is actually selling better than usual, even after Apple’s release of the iPad Mini. Analysts are pointing to the price difference of over $100 as the explanation.
The Kindle Fire HD starts at $199 whereas the Mini begins at $329 and while the Apple product is more functional, most people shopping for a small screen device are looking for only two simple abilities: to surf the Web for simple things like social networking and to read books and magazines. Both devices are capable of those.
According to a report on AllThingsD, Drew Herdener from Amazon is quoted as saying:
“Wednesday [October 24] was the $199 Kindle Fire HD’s biggest day of sales since launch and up 3x week over week.”
It’s very likely that this uptick in Kindle purchases is from consumers who were waiting to see what the nearest competition yet-to-release (Apple) would offer before making their decision. So although pre-orders of the Mini have sold out, the Kindle Fire HD (with its better display, smaller size, and slightly slower processor) is doing well.
It will be interesting, once the excitement wears off, to see how well the Mini does going forward. It’s an interesting device that will appeal to some, but will not likely convert Android users, but it may cannibalize some Apple’s other device sales – namely the iPad.
Time will tell for sure, but the market for these devices is relatively small compared to those who’d prefer a full-sized pad or a dedicated e-reader.