Amazon Will Challenge iPad With 5M Kindle Tablets In 2011

By

amazon-tablet-android

Amazon appears confident about its rumored tablet’s chances against the iPad. In fact, the Kindle maker has ordered several million 10-inch units for the entire 2011 year.


The online retail giant has begun what Canaccord Genuity chip analyst Bobby Burleson calls a “strong build,” ordering more than 1.5 million units for the current three-month period and possibly as high as 5 million devices for all of tis year.

The hefty orders appear to contradict recent concerns suppliers may be too busy fulfilling Apple’s devices to deal with any rival products. Touch panel supplier TPK was said to be “reluctant to make a commitment to supplying touch panels to Amazon,” industry publication DigTimes had reported. Amazon is shooting for introducing its tablet in September, during the all-important back-to-school period, according to reports.

However Burleson sees touch panel supplier Atmel and Tegra processor maker Nvidia as benefitting from the Amazon orders.

In a related development, the advent of tablets are causing consumers to choose between an iPad-like device or a laptop. “Simply put, with tablets, consumers are asking themselves ‘what device should I purchase?’,” said Credit Suisse analyst Thompson Wu Wednesday. “We believe this has translated into some cannibalization.”

At last count, Apple has sold more than 2.6 million iPad 2, indicating Amazon foresees significant demand for its Android-powered alternative. Is Amazon right in its confidence? Let us know.

Newsletters

Daily round-ups or a weekly refresher, straight from Cult of Mac to your inbox.

  • The Weekender

    The week's best Apple news, reviews and how-tos from Cult of Mac, every Saturday morning. Our readers say: "Thank you guys for always posting cool stuff" -- Vaughn Nevins. "Very informative" -- Kenly Xavier.