Amazon Kindle Fire quickly matches iPad’s popularity

Amazon’s new Kindle Fire tablet appears to be firing up holiday shoppers faster than anticipated, according to a new study of 2,000 consumers.

The Kindle Fire and iPad 2 are virtually tied among U.S. holiday shoppers regarding product preference according to Park Associates' study, “Consumer Decision Process: Holiday Intentions.”

The study reports that 49 percent of broadband households that plan to purchase a consumer electronics product this holiday season would chose Apple’s iPad2 for $499, while 51 percent would chose Amazon’s tablet for $199.

Demographics -- particularly age -- play a big role in the survey’s results. Consumers 45 or older prefer the Kindle Fire, while those with higher household incomes and higher education prefer the leading tablet from Apple. Among holiday shoppers most likely to buy a tablet by the end of the year, the scales tip in favor of the iPad, at 62 percent vs. only 38 percent choosing the Kindle Fire.

As we’ve reported at TabTimes, tablets promise to sell well this holiday season, with 16 percent of U.S. broadband households intending to buy one. This holiday-purchase intention rate places the tablet fourth after smartphones, LCD/LED TVs and laptops, among the 30-plus consumer electronics products in the study. Other top gift items include digital photo frames, game consoles, Microsoft Kinect and e-readers.

Daniel Elswick, a computer security and networking expert from Maryland, summed up what many shoppers are thinking this season.

“I think the Fire will get people that want a tablet, and would have gotten an iPad, but it was too expensive for what they wanted to do,” Elswick said. “For example, a friend of mine is in this exact situation. She wants a tablet to read on, browse the web a little and watch movies and TV shows, and maybe play some games. She couldn’t justify paying $500 for an iPad, because she didn’t really need it. Now that the Fire is out and is only $200, she is going to get one. She’s actually trying to decide between the Fire and the Nook Tablet at $250.

“I’m giving a Fire to my parents for Christmas as well,” Elswick continued. “My parents wouldn’t use a tablet much so they couldn’t justify spending the money on an iPad, but it’s one of those things that would be nice to have.”

"Having already established itself as the leading brand in e-readers, Amazon’s entrance into the adjacent tablet space will disrupt the market," said Tricia Parks, CEO, Parks Associates. "Amazon’s competitive pricing, combined with its considerable media and application offerings, makes the Kindle Fire a serious tablet contender, likely to scoop up market share among bargain shoppers.

"After a 10-point drop from 2009 to 2010, consumers’ overall CE purchase intentions for the holiday season are on the rebound; our data show a 21 percent increase in CE holiday shopping, compared with the last holiday season,” Parks said. "Thanks to expanding price ranges for hot products such as tablets and game consoles, the CE industry should have a strong season."

The study surveyed 2,000 U.S. broadband heads-of-household in November. The research measured electronics purchase intentions for the holiday season, as well as year-to-date electronics purchases for many products, including PCs, tablets, e-readers, Blu-ray players and game consoles. The survey also tracks household services and multimedia subscriptions, product market share by brand, and brand image.

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