BusinessInsider To Amazon: Drop Dead! Hurls Ungrounded Speculation As Fact

By | January 20, 2012

We’re usually fans of BusinessInsider‘s sensationalist reporting, but a headline this morning was so far beyond the pale that we felt compelled to comment on it. The headline reads “Amazon Is So Scared of the iPad 3 That It Cut Kindle Fire Orders In Half

The headline’s implication is that as a result of the iPad 3, Amazon(AMZN) reduced a previously scheduled Kindle Fire order by 50%. Let’s see the content of BusinessInsider’s actual post:

Amazon sliced its Kindle Fire orders in half for the Q1 2012 to 3 million units, according to DigiTimes, citing supply chain sources.

The cut is likely due in part to the end of the holiday shopping season and the upcoming iPad 3, which is expected to launch in February or March.

DigiTimes reports that Amazon ordered 6 million Kindle Fires in Q4 2011.

The report, source from DigiTimes, actually tells us that Amazon’s Q1 order is half of its Q4 order, and reasonably adds that it’s partly due to “the end of the holiday shopping season”. BusinessInsider then goes on to add that the upcoming iPad 3 is a cause, contradicting its source article, which states
However, the sources stated that the decline in orders for Kindle Fire tablet PCs is in line with market expectations during the off-peak season and the impact on Kindle Fire’s touch panel suppliers, including TPK Holdings and Wintek, would not be significant.
The Kindle Fire has been a remarkably successful product for Amazon. Yes, it’s not an iPad.  Spinning seasonal production changes as indicative of “fear” of the iPad 3 or as unexpected may generate pageviews, but it’s not truthful.  Call us old-fashioned, but we believe, even online, that the truth should come first.
Update: Someone at Business Insider agrees. The headline now reads “REPORT: Amazon Just Cut Kindle FIre  Orders In Half For Q1”, and the commentary saying is likely a result of the upcoming iPad 3 has been removed. The headline and article still state that this is an action Amazon just took and imply it’s a change to Q1 production, neither which claim is supported by the source article. The article contains no indication that it has been modified from its original form. Not cool.
Update 2: Business Insider has now added the correction below. Thank you.
CORRECTION: Initially we said the Kindle Fire cuts were because of the impending iPad3 launch in February or March. That is not what the DigiTimes reports says. It’s likely Amazon was planning these cuts all along. We apologize for the error.

Disclosure: Author holds no position in any stock mentioned
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