back to article Amazon Kindle biz boosted by... Apple iPad

Amazon's Kindle e-book reader is doing rather well - and it's all down to Apple. US investment house Cowen and Co. has forecast that Kindle sales will rise 140 per cent during 2010, with shipments hitting 5m units. Amazon's e-book business will do even better: it will grow 195 per cent to $701m, Cowen forecast. It's e-book …

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Silver badge

I'm not sure I agree with your central premise.

Given that the PRS350 is currently available for £129.99 from Waterstones, £21 more than the Kindle, I'd be very surprised if the Kindle price is being subsidised significantly, if at all.

Good to see eBooks taking off, though.

GJC

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letters and/or digits

Must admit, after reading a few books through the Kindle App on the iPhone it's made me want to go buy a Kindle :D

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Go

Well, they're half right

Most heavy readers I know think of a book as something to keep and re-read forever (even if that really means shelves full of books that aren't looked at for years). With that mindset, you'd have to be mad to buy a DRMed book from the iBooks store. Who wants to commit themselves to forever owning an Apple device so as to retain access to their library? Trust that Apple will eventually allow me access to my books on another platform? Not likely.

I actually prefer iBooks to Kindle on the iPad, but Kindle works well enough and I know it's reasonably likely that whatever ebook reading device I own in five years' time I'll be able to run a Kindle app on it and still have access to my books.

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Grenade

Such insight

"Lower prices lead to higher sales"

I'm in awe. It's like you've been possessed by the spirit of Adam Smith.

</sarcasm>

Sorry. Still metabolising caffeine.

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Thumb Up

Makes a lot of sense

I've got an Android phone and have installed the Kindle app - it really is a good bit of software, and with the prices of ebooks on Amazon sometimes £4-5 cheaper than some other book stores (Waterstones and WH Smith spring to mind) it's working out well. I am also looking to get a cheap tablet as a Christmas present to myself and the Kindle app will be one of the first I load on it.

Don't forget though that there are even cheaper (free), readily available books on the Internet - just check out Gutenberg or the Internet Archive for details.

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Alert

iBookstore - rubbish selection, expensive books

UltimateKindle.co.uk did a quick investigation comparing and contrasting the Kindle Store and the iBookstore. We found that, at the time of the investigation, iBooks only stocked three of the Sunday Times bestsellers whilst the Kindle stocked all ten. The average cost of those books at iBooks was £5.66, compared with £3.14 in the Kindle Store. It's really not surprising that iPad users are using the Kindle app more than the iBooks app!

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Who Has the Price Gun

Your central point remains, Amazon has more books for less cost.

iBooks are like iTunes, the publisher sets the price and Apple takes 30%. For both stores, the publisher chooses if the store will offer the eBook. (In contrast, a brick and mortar book store may get its books direct from the publisher, from a wholesaler, or used; the publisher only has control over first sale.)

So far so good. If Apple charges more, it's either that the publisher is charging less to Amazon or Amazon is taking a smaller share and/or subsidizing their eBooks.

Amazon may also have said that in order for it to "stock" the dead tree version, it requires a steep discount in its cost for electronic versions. Perhaps this better explains how Amazon may have lower prices, higher title count, and is profitable.

The publisher, though, may be seeing that they have to sell three e-books for every dead-tree book they don't sell, and until volume ramps up, they may see increased unit sales and declining revenue. A store that can't leverage dead-tree sales is perhaps getting a price meant to drive per volume e-book revenues closer to their paper predecessors. Some publishers may think eBooks are a losing proposition for them. Amazon? Well, they need Amazon. Apple? Not so much. The good news for them, as they look at it, no used e-book market.

Meanwhile, in this transitional period, Amazon wants to sell eBooks and brought out the Kindle to improve the user experience for that activity and Apple wants to sell iPads so it sells books and distributes Amazon's Kindle app. It's a good time to be a reader, if one has embraced eBooks.

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Pint

Question?

You can browse the web (in a fashion) on the Kindle 3 over Wifi.

Can you also browse the web using 3G?

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Anonymous Coward

lol

one thing I can say it is easy to get your stuff published on Kindle and the royalty payments arn't too bad considering the zero effort set up (30ish% and 70ish% depending on price)

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