Business, Hardware

Amazon Plans to Sell 4 Million Tablets by End of 2011?


According to a story on Taiwanse industry newspaper Digitimes, Amazon is getting ready for an aggressive ramp-up of their two tablet models. As it usually happens, sources from the manufacturers went for a drink with a local journo and disclosed a lot of neat information.

First off, Amazon opted for Quanta Computer, a change from popular Kindle eBook readers which are manufactured by Foxconn/Hon Hai. Quanta is comitted to delivering 700-800 thousand units per month as Amazon wants to ship four million tablets by the end of 2011. This is a very aggressive sales goal, given that the devices will only come to market at the tail end of Back to School, meaning Amazon has four months to ship four million tablets.

To compare it to Apple’s results for the fourth calendar quarter of 2010, Apple shipped 7.33 million iPads. In the past quarter, the company introduced iPad 2 and recorded sales of only 4.69 million iPads, showing warning signs of market saturation (just like netbooks).

Also, there might be a change in hardware. According to Digitimes, NVIDIA might have lost the Tegra 2 and Tegra 3 supply deal since the Kal-El chip is allegedly late and according to our sources, we won’t see volumes before year end. Of course, this would be too tight for Amazon and Quanta – since Quanta is starting with production next month. Then report might have confused Texas Instruments baseband chips to NVIDIA Tegra 2 and 3 SOCs, though.

Time will tell is Amazon’s aggressive sales plan will yield results.