Amazon’s Kindle Fire tablet is apparently doing so well that it is starting to eat into sales of Amazon e-readers.

According to Digitimes, Amazon was forced to cut orders for its e-book readers due to slow demand. It is estimated that Amazon will manage to sell just two million e-book readers in Q1 2012, a staggering drop from nine million in Q4 2011.

Consumers are apparently substituting their beloved Kindle e-readers for the new tablet, which offers a lot more functionality, but doesn’t feature an e-paper screen. Some people are in for a nasty surprise when they pull out their Kindle Fire on the beach this summer.

More here.