Analysts estimate that Amazon’s (NASDAQ:AMZN) Kindle Fire tablet, launched Tuesday, could sell 5 million units by the end of 2011.
Amazon (NASDAQ:AMZN) is hoping to corner a large share of the tablet market — possibly at the cost of Apple’s (NASDAQ:AAPL) hot-selling but much more expensive iPad. At $199, Amazo is positioning the Kindle Fire as a media-friendly tablet that is great for reading, streaming music, and video: all of which can be provided, conveniently, by Amazon (NASDAQ:AMZN). “Amazon has all the pieces in place to ensure a successful launch for the Fire,” said Forrester analyst Sarah Rotman Epps.
Analyst Doug Anmuth of JP Morgan, expects Amazon (NASDAQ:AMZN) could sell as many as 5 million Kindles this quarter and 20 million in 2012. He feels the friendly pricing and extensive distribution would bring it within reach of many consumers who were previously not inclined to purchase tablets due to cost considerations. The serious competitor at this price point is Barnes & Noble’s (NYSE:BKS) Nook.
Here’s how these stocks are trading now:
- Amazon.com Inc. (NASDAQ:AMZN): The shares recently traded at $217.98, down $0.95, or 0.43%. Its market capitalization is $99.13 billion. They have traded in a 52-week range of $156.77 to $246.71. Volume today was 1,707,257 shares versus a 3-month average volume of 6,636,430 shares. The company’s trailing P/E is 114.91, while trailing earnings are $1.90 per share. About the company: Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company’s products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Get the most recent company news and stock data here >>
- Apple Inc. (NASDAQ:AAPL): The shares recently traded at $384.47, up $5.21, or 1.37%. Its market capitalization is $357.33 billion. They have traded in a 52-week range of $297.76 to $426.70. Volume today was 5,087,124 shares versus a 3-month average volume of 20,598,400 shares. The company’s trailing P/E is 13.89, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Get the most recent company news and stock data here >>
- Barnes & Noble, Inc. (NYSE:BKS): The shares recently traded at $15.73, up $0.33, or 2.14%. Its market capitalization is $911.03 million. They have traded in a 52-week range of $10.30 to $16.62. Volume today was 358,273 shares versus a 3-month average volume of 1,199,490 shares. The company’s trailing earnings are $-1.20 per share. The company pays a dividend of $1.00 per share for a dividend yield of 6.30%. About the company: Barnes & Noble, Inc. operates superstores and mall-based bookstores throughout the US. The Company operates book superstores under the names Barnes & Noble Booksellers, Bookstop, and Bookstar. Barnes & Noble also operates bookstores in shopping malls under the names B. Dalton Bookseller, Doubleday Book Shops, and Scribner’s Bookstore. Get the most recent company news and stock data here >>