Apple May Drop iPad Price To Compete With Kindle Fire

IHS iSuppli Display Materials & Systems Service is predicting that Amazon will ship 3.9 million Kindle Fire tablets during the last three months of this year. (We’ve included their infographic of the prediction on the left.)

IHS expects that this will make Amazon the second place contender in the tablet arena, albeit still pretty far behind Apple. The press release explains more: “This will give the company a 13.8 percent share of global media tablet shipments in the fourth quarter, exceeding the 4.8 percent held by No. 3 Samsung, and second only to Apple’s commanding 65.6 percent portion of the market, as presented in the table below.”

So what does this mean for Apple? Possibly a price drop on the iPad 2, when they introduce the third edition of the tablet, says IHS. The press release explains,”This will provide a value alternative for entry-level users in the same way that the company continued to offer the iPhone 3 when it rolled out the iPhone 4. This approach would allow Apple to maintain its target profit margins on both the iPad 3 and the iPad 2, while offering end-users an ever-expanding family of products.” Via Digital Book World.