Kindle Fire: Amazon Has Shipped 3 to 4 Million Kindle Fire Units, Expected to Reach 5 Million by Year End

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In the first month into the Amazon Kindle Fire’s market life, the tablet is already selling 3 to 4 million units, according to estimates. Is Amazon on its way to tablet dominance through its low-cost e-reader/tablet?

When the Amazon Kindle Fire was announced, analysts estimated that the company will sell about 5 million units by year-end, mostly due to the low entry price point for the 7-inch tablet/e-reader. At $199, the Kindle Fire would be an attractive alternative to more expensive tablet offerings like the iPad and other Android devices. But while analyst estimates were scaled back a bit, word has it that Amazon is likely to meet the 5 million mark after all.

Sources close to component and manufacturing suppliers in China say that shipments to Amazon have reached 3 to 4 million units, as cited by DigiTimes. Sources familiar with Quanta Computer say that Amazon has actually increased orders from the OEM manufacturer and shipments are likely to reach 3 to 4 million units already. Shipments will reach up to 5 million units by end of 2011 or early January 2012.

Meanwhile, figures cited by sources close to Wintrek, which supplies touchscreen panels, say that shipments are likely to reach 3 to 3.5 million units by end of December 2011. Neither Amazon, Quanta nor Wintrek have officially commented on the matter.

However, shipping figures do not necessarily translate to items sold to consumers, and suppliers like Quanta and Wintrek are reportedly making an effort to keep their inventory moving to make sure they don’t overstock. Still, this is a good trend for Amazon, which means that the Kindle Fire is already gaining traction in the market, and is poised to take the #2 spot in tablet popularity, next only to the iPad.