Amazon.com, Inc. (AMZN) makes Big Change to Kindle Fire Production

There has been a lot of news lately surrounding the Amazon.com, Inc. (NASDAQ:AMZN) Kindle Fire. Yesterday, we spoke about the Kindle Fire HDX and how this tablet is not living up to expectations. Despite the fact that the online retailer has run into some issues with its tablets, it continues to forge ahead in hopes of gaining more market share in the years to come.

For 2014, there will be a lot going on behind the scenes in terms of Kindle Fire production. While the average consumer may not realize it, a big change is in the works. Amazon has reportedly shifted entry level Kindle Fire production to Compal Electronics from Quanta Computer.

While Amazon.com, Inc. (NASDAQ:AMZN) continues to hope for the best with its HDX, it is the entry level tablet that is going to be the bread and butter moving forward. It is expected to account for approximately 90 percent of total shipments this year.

Amazon.com, Inc. (NASDAQ:AMZN)

Who is Doing What for Amazon?

In 2014, Compal is taking over all entry level production. This doesn’t mean that Quanta is completely out of the picture. This company will remain responsible for making high end models, however, they definitely lost out big time on this deal.

Amazon.com, Inc. (NASDAQ:AMZN) is not giving up easily. The company continues to fight for tablet market share, despite the fact that it was the fifth largest vendor in 2013 with shipments of 5.45 million units. This is a commendable start, but the company only accounts for four percent of global volume. In other words, it has a long way to go to catch the top players.

Quanta is the company that is getting the worst of the deal. In addition to Amazon cutting orders, Google has done the same due to weaker than expected demand.

Compal, on the other hand, is taking all the extra business and looking forward to a great year in 2014. Along with Amazon’s entry level tablets, the company has taken on orders for the new iPad mini with Retina. As you can imagine, this will be more than enough to keep the company busy.

Even though Amazon.com, Inc. (NASDAQ:AMZN) has not had much tablet success in the past, many believe that the company could ship as many as eight million tablets in 2014. This would be a huge boost for the company, perhaps allowing it to grab more market share.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!