Kindle Fire Sales Didn’t Collapse in The First Quarter of 2012, Research Group Says - marshallknowded
To paraphrase Samuel Langhorne Clemens: "Lies, damned lies, and tablet statistics."
Thursday's media reports of Kindle Fire gross revenue collapsing later a celestial body plunge are misleading, a leading analyst says, and an indication that many tech bloggers and journalists don't understand the difference between "shipments" and "gross sales" of a product.
In a Friday blog called "Shipments Are Not Gross revenue," Stephen Baker of The NPD Group pulls atomic number 102 punches in chastising tech bloggers for misinterpreting untried data from research unbendable IDC, which shows a dramatic drop in shipments of Android tablets in the first quarter of 2012.
If you skim yesterday's IDC press release quick, it's loose to surmise that Amazon's Kindle Fire had a particularly abominable quarter. Here's a quote:
"Amazon, which stormed into the market in 4Q11 to grab second position with 16.8% of the market on shipment of 4.8 million units, saw its share decline significantly in the first canton to just over 4%, falling to 3rd place as a event."
Many bloggers adage the drop by Kindle Fire shipments American Samoa an indicant that Amazon is losing ground in the tablet race–and that consumers Crataegus oxycantha already have soured on the company's new 7-inch ticket.
Here's How to Interpret the Data
But that interpretation is incorrect, says Baker, who is the NPD Group's vice president of Industry Psychoanalysis. Atomic number 2 writes:
"This current firestorm around the Kindle Evoke numbers is a perfect example of how mistaking shipments for gross revenue leads the securities industry to incorrect and faulty conclusions about trends and opportunities."
As Baker points out, IDC's data shows that Amazon shipped 750,000 Kindle Fires in the first quarter of 2012, down considerably from the 4.8 one thousand thousand Fires shipped in the fourth quarter of 2011, the pill's debut quarter.
Of course, sales always rise dramatically in the fourth part quarter of the year–also known arsenic the holiday shopping season–and Amazon understandably shipped millions of Kindle Fires to its warehouses and retail partners to meet demand. All of those 4.8 million Fires shipped didn't sell, naturally, which meant plenty of inventory was left over for early 2012. This resulted in take down (OK, significantly lower) Kindle Fire shipments in that canton.
So how did the Arouse Fire knock off the first billet of 2012? Pretty darn well, thank you very much. According to NPD's Consumer Tracking Service, the Kindle actually sold-out (there is that word once again, this time properly used) 1.8 million units in the first quarter. That is, "an actual consumer bought IT and took it dwelling (or had information technology delivered) and paid their own real money," Baker writes.
Baker goes into greater detail, so go over his carry if you're fascinated in a shipments-versus-sales fuzee.
Meet Jeff Bertolucci at Today@PCWorld, Twitter (@jbertolucci) or jbertolucci.blogspot.com.
Source: https://www.pcworld.com/article/464284/kindle_fire_sales_didnt_collapse_in_the_first_quarter_of_2012_research_group_says.html
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