IHS iSuppli says the Amazon Kindle is "already shaking up the market"-- predicting the Amazon tablet will beat the competition to take 2nd place in the global Q4 2011 tablet market.
The iPad, of course, will remain firmly entrenched in 1st place.
![tablet market 2011](http://www.ftp-sgpartners.net/tdceu/uploads/uploaded/tablet_market_2011.png)
The analyst estimates Amazon will ship 3.9M Kindle Fire tablets in Q4 2011, taking over 13.8% of global tablet shipments. The total exceeds Samsung (1.8M units with 4.8% share) and is only 2nd to Apple (18.6M units with 65.6% share).
The Kindle Fire totals also contribute to a 7.7% increase in iSuppli 2011 tablet shipment estimates-- the analyst now predicts 2011 tablet shipments will reach 64.7M (up from August 2011 forecasts of 60M), with Y-o-Y growth reaching 273%.
The analyst also expects shipments will reach 287.2M by 2015.
Ultimately the ace up Amazon's retail sleeve is "rock bottom" pricing-- at $199, the Kindle Fire costs less than it the $201.70 iSuppli estimates the tablet costs to make. According to the analyst, Amazon plans to use the Kindle Fire to boost physical good sales, allowing the company to afford making a loss on hardware-- something the rest of the Android-based competition cannot.
After all Amazon offers Kindle Fire customers free one-month membership to Amazon Prime, with free movie and TV show access, the Kindle ebook lending library and (crucially) free 2-day shipping on physical goods.
Will Apple strike back at the Amazon attack? Some analysts speculate Apple will launch a lower-cost iPad version-- but more realistically, Apple could simply reduce iPad 2 prices with the inevitable iPad 3 launch, just as it did with the iPhone 4 launch last year.
Go Red-Hot Kindle Fire Blazes its Way to Second Place in Tablet Market (IHS iSuppli)