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Amazon Kindle Fire Tablets Could Sell 4M Units in 2011

A financial analyst predicts that Amazon could sell up to 4 million Kindle Fire tablets by the end of this year. Piper Jaffray analyst Gene Munster originally predicted 2.5 million units to sell by for the fourth quarter but has now given an even more positive outlook for the company.

The Kindle Fire is not just about the device, it’s about the amount of content that Amazon can integrate into the tablet. Amazon users can gain Amazon Prime membership for $79 a year which provides unlimited instant streaming of thousands of movies and TV shows and free two-day shipping on millions of items across the site.

Munster wrote last week that: “Overall, we believe the iPad offers a superior user experience to the Kindle Fire, but note that for $200, the Kindle Fire delivers as much or more than many other competitors.”

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The Samsung Galaxy Tab 7.0 Plus is on the market for $399 while Blackberry’s Playbook has recently been discounted to $199 to compete with the Kindle Fire.

However, Trip Chowdry, analyst for Global Equities Research, believes the Kindle Fire will sell 1 million devices in the fourth quarter.

In an interview with Clint Boulton of eWeek, Chowdry said: "Every indication we have as of right now, tells us that it is very likely that Amazon Fire may end up having the similar fate that RIMM's PlayBook had. A Lot of expectations, lot of sell-ins but very weak sell-through."

According to a survey by The Nielsen Company, Apple’s iPad is the most desired electronic gadget amongst children aged 6-12.

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