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Demand for Kindle Fire and e-readers waning

Demand for kindle fire dips
Kindle Fire, ereaders aren't as in demand as they use to be

Amazon may have started the (Kindle) Fire, but it seems to have a tough time stoking the flames as time goes with one analyst predicting demand for Kindle e-readers is on the decline.

In addition to waning interest in e-readers, overall demand for the the Kindle Fire tablet - which launched toward the end of last year - has dipped as well. However, it's projected that the touchscreen color model will still be more popular than Amazon's traditional e-ink models.

Kindling for the Fire

A recent intent-to-purchase survey from Pacific Crest analyst Chad Bartley gives a bit more insight into the fate of Amazon's Kindle line. According to the findings, fewer people were planning to buy a Kindle Fire -- and even fewer had interest in the company's black-and-white e-ink models.

What's more, a Q1 survey from the brokerage firm predicted 4.9 percent of respondents were planning to buy a Kindle Fire.

But during the second quarter of this year, that number mysteriously dropped to only 4.5 percent -10 percent month-over-month decline. These figures also line up with the analyst's supply checks, which declined even further to 15 percent in March.

Amazon at risk

While e-tailer Amazon may have less to fear from waning interest in the more popular Kindle Fire - which at $199 is a cheaper alternative to Apple's more expensive iPad - the company's more traditional e-readers Kindle and Kindle Touch are taking the brunt of the bad news.

This year's sales forecasts of 24 million units have been slashed to a mere 12.3 million.

"We attribute weakening demand to the large install base of Kindle e-readers -- over 28 million -- and maturing of the category after initial adoption by avid readers. We also believe ebooks are being read on a broader array of devices," Bartley explains.

That's likely to add some risk for Amazon, although the company's stock price was up $2.90 (1.54 percent) to $190.87 in the wake of Friday's bleak news.

Via: MacObserver