While the social network isn’t doing away with its direct-sale initiative, it is focusing its attention on ads that drive consumers to retailers’ sites.
There’s a limited audience for the bigger size, one analyst says.
Through Feb. 8, Amazon.com Inc. is selling its 8.9-inch Kindle Fire HD Wi-Fi tablet for $269, down from $299, and its 8.9-inch Kindle Fire HD 4G LTE for $449, down from $499. Consumers enter the promotional code “FIRELOVE” at checkout to receive the discount.
Kindle tablet sales were soft during the holidays; this week’s sale represents Amazon.com trying to clear some inventory, says Colin Sebastian, an analyst who follows Amazon for private equity firm Robert W. Baird & Co.
“The increasingly competitive Android tablet market was one impact on Kindle Fire sales,” Sebastian says. The Kindle Fire runs the Android mobile operating system. “Also, the larger screen size may have a limited audience compared to the smaller Fire tablets and Kindle e-readers.”
Baird & Co. predicts Amazon.com will sell in 2013 at least 15 million Kindles—including tablets and the original Kindle devices designed solely for reading electronic books. It does not break out sales figures by device type.
Amazon.com, No. 1 in the Internet Retailer Top 500 Guide, did not respond to a request for comment.
Cyber Monday 2012, Nov. 26, was the biggest day ever for Kindle sales worldwide, Amazon.com said in November. Amazon declined to give exact sales figures. The e-retailer offered a special deal on Cyber Monday—$129 for the Kindle Fire, down from $159. It turned out to be the most successful Cyber Monday deal ever for Amazon, the e-retailer says.