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Amazon building millions more Kindle tablets

The hot demand for the upcoming Kindle Fire has sparked faster production

It’s no secret that Amazon’s Kindle lineup of e-readers has been selling extremely well. The Kindle Fire, which has not even been released yet, has already reached over 100,000 pre–orders just one week after its September 28th announcement.

Amazon on Wednesday acknowledged the surge in demand with the most appropriate response – more production. Through a press release, the online retailer confirmed plans to manufacture more even Kindle Fire tablets than originally ordered.

And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned,” said Amazon CEO Jeff Bezos.

The same press release also announced outstanding Q3 2011 performance for Amazon with net sales of about $10.88 billion, a 44 percent increase from a year earlier. For the final quarter, Amazon is expecting up to $18.65 billion in net sales, yet another 44 percent increase from Q4 2010. The Holiday shopping season as well as the aggressively priced Kindle tablets should prove to be boons for the online retailer.

Meanwhile, operating income (loss) next quarter should be about $200 million less than Q4 2010 if all goes as planned.

The new Kindle family, including the Kindle Fire, is currently on course for a November 15th launch. Hit the press release below for more details.


+ Show Press Release
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Allen Ngo, 2011-10-27 (Update: 2012-05-26)