Amazon Kindle, including the high-end Kindle Fire, is quickly becoming the second-fastest selling tablet in the market. Sales are projected to reach 3.9 million units in 4Q’11, giving it a 13.8% global market share, which is second only to Apple’s 65.6% share, according to IHS Research. In total, 64.7 million tablets are expected to ship in 2011, up 273% from last year and on tract to reach 287.2 million units 2015.
The Kindle Fire is less than half the price of the iPad2, which starts at $499. It does less, but if all you want it for is entertainment (books, music & movies), shopping, and online web browsing, then the $199 price sounds pretty good. Kindle Fire is sold at a loss (less than the $201.70 manufacturing cost) in hopes of making profit from content and online shopping. The purchase price even includes a one year subscription to Amazon Prime, a $79/year service offering free 2-day shipping with any Amazon purchase.