NEWS ANALYSIS: Amazon’s Kindle Fire sold very well during the holiday season. But sales have slacked off significantly since then. Now the Kindle Fire is dealing with a big, bad competitor in the Google Nexus 7, which is competing right in its price and screen size sweet spot.
Googles Nexus 7 is selling extremely well
. In fact, the companys Google Play store, which is one of the homes of its device, shows the 16GB, $249 version of the tablet sold out while the 8GB version of the table is still available.
Whats worse for consumers, Google hasnt said when it might have more in stock, which is a clear indication that demand for the tablet was much higher than the search giant had initially anticipated. That shortage has carried over to retail outlets where its reportedly difficult to find the Nexus 7 on store shelves.
The Nexus 7s success was predicted by some who said it was the right balance of high-quality components and affordable pricing. And although Google is enjoying its success, sales of its chief competitor, the Amazon Kindle Fire, have been becalmed. The companys Kindle Fire was once the 7-inch tablet markets best option. Now, its a distant second. And slowly but surely, the Nexus 7 is stealing all of the Kindle Fires sales.
Amazon will have to correct that situation soon if it doesnt want its tablet to be swamped from the market. Thats why pundits are saying to look for new and updated Kindle Fire models in time for the holidays.
Read on to find out how the Nexus 7 is killing the Kindle Fire
1. Its all about design
When comparing the Kindle Fire and the Nexus 7 on their design quality, its hard to pick Amazons option. The Kindle Fire is very basic, due mainly to Amazons desire to keep its price down. But with the Nexus 7, Google was able to also keep the price down while remembering the look and feel of a product matters. Its nice to see.
2. The value argument
When it was first made available last year, Amazons Kindle Fire delivered real value for its $199 price tag. But as advancements have been made in components, the Kindle Fires value proposition has declined. Todays consumers want to know that the product theyre getting can justify its price. The Nexus 7 can deliver that value. The Kindle Fire, on the other hand, leaves much to be desired at this point.
3. Maybe $199 isnt as important as some think
There was some concern after the Nexus 7 reached the market that its $249 price tag would be a liability
. However, that doesnt appear to be the case. For those that want the cheaper, $199 model, they can get that. But for those who want to spend $50 more and get the 16GB option, it was available, at least until recently. According to Google Play, the 16GB option is sold out as of this writing. Maybe Googles decision to have one Nexus 7 model $50 more expensive than the Kindle Fire wasnt such a bad idea, after all.
4. The Tegra 3 is huge
Googles Nexus 7 comes with the quad-core Tegra 3 processor. And with it comes top-notch performance and reliability that most folks just wont find today. The Nexus 7 is more powerful than the Kindle Fire. And consumers know it.