Once hailed as the first true rival to the iPad, Amazon’s Kindle Fire no longer seems to be much of a threat to Apple’s tablet. The Fire had no impact on Apple’s March-quarter iPad sales. Indeed, during the company’s second-quarter earnings call, CFO Peter Oppenheimer said Apple is selling new iPads “as fast as we can make them.”
One-fifth of American adults (21%) report that they have read an e-book in the past year, and this number increased following a gift-giving season that saw a spike in the ownership of both tablet computers and e-book reading devices such as the original Kindles and Nooks.1
How can Apple, with $110 billion in the bank, annual sales of $140 billion and earnings that nearly double every year, be valued so much lower than Amazon, which has $6 billion in the bank, sales of $50 billion and earnings that fell 35% last quarter?