The early popularity of the Nexus 7 is great news for Google, but not so much for their competitors. Amazon, who is said to be gearing up for a late summer launch of an updated version of their Android-based Kindle Fire, has the most to lose in the 7-inch tablet market. The retailer surely won’t like news that Cowen analyst Kevin Kopelman is reducing his sales forecast for the Kindle Fire in 2012.
Kopelman now says the Kindle Fire, which competes directly at the Nexus 7′s $199 price point, will sell in the range of 12 million units, a reduction of 2 million from his initial forecast of 14 million. The lower sales numbers equate to a 2 percent reduction in projected revenue in 2012 and a 3 percent reduction in 2013.
We’ve yet to see any hard data comparing first month sales figures of the Nexus 7 and Kindle Fire, but it is known that sales of Amazon’s tablet have dropped off since an initial holiday boom. Rumored specs for a Kindle Fire 2 put it closer to the Nexus 7 in terms of hardware, but it remains to be seen if the new model will spark sales.
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