October 7th, 2010
Why Amazon Are Such Strong Influence In eBook Market
Internet News, by Albel.
Amazon unveiled its new and improved third generation Kindle reader towards the end of July. It’s been selling like hot cakes ever since and Amazon has, not for the first, run out of stock of Kindles. It hardly complies with the post iPad launch predictions which forecast the death of the Kindle at the hands of Apple’s new baby.
There’s not much doubt that the iPad has the Kindle beat in any number of areas. Touch screen, colour screen, improved web browsing, a huge selection of apps and games, video play back – it’s a long list, and it goes on. Which is not that surprising when you consider that the entry level iPad sells for roughly three and a half times the price of the entry level Kindle.
Still get the Kindle reader to better consider the iPad in most areas, which would read anyone whose main interest is important for books. The e-ink display technology can be black and white, and it can not with video, but the Kindle allows for up to four weeks last between charges. While the iPad the color display can be a thing of beauty, it is power hungry and you will be happy to take more than ten hours between charges. The Kindle is smaller and lighter than the IPAD and how Amazon has emphasized in recent TV commercials, was it has a screen that is much more readable – even in bright sunlight. As already mentioned, the initial price of $ 139 Kindle is clearly iPad below the strike price of 489 $ – and pay no monthly fees either.
However, this does not mean all of the benefits enjoyed the Kindle. Looking at the hardware in isolation is a big mistake when e-book reader – to read and the e-books on them. One could argue that Sony’s PRS-reader, which was published in 2006, perhaps better than the original Amazon Kindle launched in November 2007. But the Kindle established fairly quickly as the market leader because it is much easier to buy, Kindle books for her than it was to get books for the Sony Reader. It was not just that Amazon had a huge selection of Kindle books on its website for customers to choose from, but they buy and have them delivered was a very quick and simple process.
As the market develops and matures, e-book sales will assume a greater importance than the sale of e-book reader hardware. Amazon is very well positioned to benefit from ongoing e-book sales. They could even choose to use these to subsidise the cost of their reader hardware if they wanted to.
Amazon has a clear manner in which they assume that the market will continue through the release of a number of free apps for the consumer to read Kindle books shown to develop on a variety of other devices – including PC, Mac, a device with Android, The BlackBerry smartphone and even the
iPhone and iPad. You may also think that Amazon seem to be dragging the ground under their best-selling product – and yet all these applications are effectively additional outlets for Kindle books – and that’s where e-book profits are made in the future.
It seems to be a winning strategy. Today, Kindle books account for somewhere between 60 and 80 percent of the US e-book market. As the market develops and matures, it seems likely that Amazon’s share of it will reduce a little – but it looks like they will continue to be one of the biggest influences in this market for the foreseeable future.
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