Originally Posted by howyoudoin
IMO, huge argument for market saturation more than anything.
And for "Kindle sales show seasonality".
By now it is known that reader and tablet sales spike during the holiday season. So a 50% or more drop in march from december is pretty much as expected.
(Gaming consoles are the same; huge spike in Q4, big drought in Q1.)
The market saturation aspect is also supported by the recent eInk financials and the Nook STR underperformance last XMAS.
In North America, at least, dedicated reader penetration has already reached pretty much everybody who can justify one at present. A good portion of sales (at least til next holiday season) will come from the reader replacement market and incremental improvements to the current readers' feature set (already being address by the Nook Glowlight, for one). And from mulltipurpose devices, which will better appeal to the casual readers.
The plateau'ing of NorthAm hardware sales also explains the increased focus on international expansion.
This is just verification of what we've known since January.