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Muhammad Bazil
Muhammad Bazil
Articles (192) 

Amazon Takes the Lead in E-Book Sales

October 28, 2012 | About:

In November 2007, Amazon (NASDAQ:AMZN) finished the leap from marketing others’ products to selling its own. They presented the Kindle, an electronic book with the competence of downloading books wirelessly. Some other organizations, especially Sony (SNE), had been marketing electronic books, but Amazon’s method appeared to create a totally new experience, providing users the ability to buy almost any book, at anytime, anyplace.

Soon after, in May 2009, the Kindle had developed into the business’ biggest selling product. Amazon built up to a 90 percent part of the U.S. e-book market, in some measure because it sold new books at a deeply discounted standard price of $9.99. Many Kindle proprietors said the low price attracted them to buy more e-books, but producers dreaded that the price would ultimately corrode their profits.

But in July 2010, Amazon proclaimed that throughout the earlier three months, sales of books for the Kindle had outpaced sales of hardcover books for the first time. For Amazon, it was obvious that it had positively made the change from a print business to a virtual one, a change that has dared most businesses that sell media. Amazon credited the surge in e-book sales in part to its latest, lowest-priced Kindle with advertisements, which was presented in April 2012. The following chart is supporting the Kindle e-book's success over physical books.


The Kindle’s achievement brought a string of contestants into the marketplace, most particularly the iPad, Apple’s tablet computer. Amazon replied to the Apple (AAPL) danger by conducting a publisher-by-publisher fight, to keep as many books as possible out of Apple’s grip, while preserving as much flexibility as possible to set its own prices.

The Kindle Fire was the company’s long-awaited reply. The Kindle Fire has a seven-inch touchscreen, considered 14.6 grains and was ready with a dual-core processor. But the vital feature was the price. At $199, the Fire was less than half the price of the Apple iPad, which was selling at $499. It was the first pill from a main business to seriously weaken the iPad in price.

On the other hand, the Kindle Fire was less than a raving achievement compared with some of its earlier predecessors. Among many grievances: there is no exterior volume control, the off switch was prone to hit by coincidence and web pages took a long time to load. Also, there was confidentiality on the device: a wife or child who turned it on would suddenly know all that you had been doing. The touch screen was hesitant and sometimes balky.

Modernizing the Kindle Fire

Lastly, in September 2012, Amazon introduced the Kindle Track, together with the Kindle Best HD, a tablet computer which comes in two versions, one that is nearly as big as the iPad and that destabilizes its worth by $200.

The corporation also introduced the Kindle Paperwhite, a form of the black-and-white Kindle that is solvent and faster than its predecessor. It also has a new kind of screen, lighted from the bottom that has a higher difference and is easier to read, counting in the dark too. You can imagine Kindle’s future demand by the chart below.


The Kindle Fire HD tests the iPad on numerous façades. The larger version of the device has an 8.9-inch screen, likened with the iPad’s 9.7 inches. The Amazon Kindle Fire also has a front-facing camera with Skype addition, which competes with the front-facing camera on the iPad and Apple’s Expression Time video conferencing features. Like the iPad, the newest Kindle Fire has 16 gigabytes of storage.

The larger form of the Kindle Best HD prices at $300; the zero pad costs $500. Amazon is also proposing a $500 form of the Kindle Best HD with cellular connectivity, which is more inexpensive than Apple’s slightest luxurious iPad with cellular connectivity, which prices at$630.

Amazon has functioned with many of their associates including Facebook (FB), Microsoft (MSFT) and game designers, to create requests designed specifically for the Kindle Best HD. The applications are obtainable for purchase from Amazon, lengthways with additional content like video, melody and books. With this the company’s stated net revenue of $7 million, or $0.01 a share, on sales of $12.8 billion. Analysts projected the company would earn $0.02 a share, down from $0.02 a share in the second quarter of 2012. They expected revenue of $12.8 billion, up from $9.91 billion 2012.

About the author:

Muhammad Bazil
Muhammad Bazil is a financial journalist and editor for a variety of websites, public policy organizations, and book publishers. He has written hundreds of published articles and blog posts on topics including budgeting, credit management, real estate and investing. His articles have been featured on the homepage of Yahoo!, MSN and numerous local news websites.

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