Holiday sales of Amazon's Kindle Fire HDX were not strong enough for Amazon to maintain tablet market share. The company shipped just 5.8 million tablets in the fourth quarter, compared to 41 million shipments of Android tablets. The Kindle's performance resulted in a dip in market share from 10% in the fourth quarter of 2012 to 8% at the end of last year, according to BI Intelligence estimates, which are based on data from Strategy Analytics, IDC, and Canalys.
Certainly, Amazon can't be thrilled with the tablet's performance. But in realty, Amazon has admitted that it sells the devices at cost, and the idea was never to have the most popular tablet out there.
In the report, we dig into available data on Amazon's unique mobile strategy. Amazon has achieved respectable results in terms of app downloads and app revenue on Kindle Fires, and yet is often left out of mobile platform analyses that focus on Apple, Google, and Microsoft.
The Amazon Appstore is also generating strong revenue results. Popular Kindle Fire apps are generating 59 cents of revenue for every dollar earned by top apps in the Google Play store, according to a Distimo study. Download volumes are about half those on Google Play for top app titles — impressive considering how many more Android devices are in circulation.