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Apple Lowers iPad 2 Sales Forecast as Amazon Kindle Fire Gains Popularity

Amazon's Kindle Fire tablet device might have cannibalised Apple iPad 2 sales during the holiday season.

According to an articleon Cnet, Morgan Keegan analyst Tavis McCourt said in a research note to investors that he is lowering the iPad 2 sales forecast for the December quarter because of Amazon's Kindle Fire.

"We are lowering our unit shipment estimates for iPad in the [December] quarter from 16 million to 13 million. Based on data from Amazon, we believe the Amazon Fire likely sold 4 [million to] 5 million units this holiday season," he said in the note, adding that Kindle Fire might have eaten 1 million to 2 million iPad sales.

That certainly seems to be the case because Amazon said sometime ago that people purchased around 1 million Kindle Fire devices every week in December.

He also stated that revenues generated by iPad sales in this quarter might be lower than the previous quarter because of the massive popularity Kindle Fire.

Apple might have expected the Kindle Fire to have an impact on iPad sales because the company was recently rumoured to be working on a small screened version of the iPad to take on the Kindle Fire.