Kindle Drives Amazon to Big Third Quarter

AnemicOak · 10-22-2009, 06:27 PM

From Publishers Weekly...

Quote:

Judging by Amazon’s third quarter results, the e-tailer can carry on its price war with Wal Mart and others for a long time. Total sales for the company rose 28%, to $5.45 billion, in the quarter ended September 30, (and increased 29% excluding exchange rates). Operating income jumped 62% (69% excluding exchange rates), to $251 million. The results appear to have been driven by the Kindle. Although no sales figures were released, Amazon chairman Jeff Bezos said in a statement that the e-reader “has become the #1 bestselling item by both unit sales and dollars – not just in our electronics store but across all product categories on Amazon.com. It’s also the most wished for and the most gifted.”....

Full article...
http://www.publishersweekly.com/article/CA6703587.html

poohbear_nc · 10-22-2009, 08:10 PM

Hmm...

Amazon offers an iPhone app.
Amazon launches the international Kindle2
Amazon cuts the price of the iKindle and refunds $20 for previously purchased units without being asked to.
Amazon promises an international DX early in 2010
Refurbished K1's, K2's, and DX's are selling at deep discounts.
Amazon drops book prices to outsell Walmart, etc.
The number of Kindle books available continues increasing - to now over 350,000.

And then - the Kindle Reader on the PC, with a Mac version promised to follow soon. No Kindle required to buy & read Kindle books.

I don't doubt that 2009 will be a very good year for Bezos & company.
This is quite a record for a single company in 1 year.

Kali Yuga · 10-22-2009, 08:24 PM

So am I reading it correctly, in that the estimate is the Kindle is responsible for possibly up to $464 million in revenues for Kindle hardware, and up to $183 million for ebooks, in Q3?

Maike13 · 10-22-2009, 09:09 PM

Hmm... indeed. I can't quite share the rosy outlook.

Amazon offers an iPhone app.
B&N already has app for iPhone, iTouch, Blackbery, PC and Mac. An Android version can't be far off.
Amazon launches the international Kindle2
Should have done this a long time ago
Amazon cuts the price of the iKindle and refunds $20 for previously
purchased units without being asked to.
Looks awfully like a reaction to match B&N Nook price. Amazon having to react to other vendors moves is not a positive sign.
Amazon promises an international DX early in 2010
Good move but I hope Amazon has Kindle 3 and DX equivalent in the works
Refurbished K1's, K2's, and DX's are selling at deep discounts.
Limited supply won't do much for the bottom line
Amazon drops book prices to outsell Walmart, etc.
Again, Amazon forced to react to other vendors moves.
The number of Kindle books available continues increasing - to now over 350,000.
Good numbers but will readers tire of Kindles closed format
And then - the Kindle Reader on the PC, with a Mac version promised to follow soon. No Kindle required to buy & read Kindle books.
Again, B&N already has app for iPhone, iTouch, Blackbery, PC and Mac

2009 will be a very good year for Bezos & company. But 2010 looks a lot cloudier. Amazon has done great with almost no competition. It remains to be seen how they can do with Walmart, B&N, Google, maybe Apple, and others now seriously gunning for them. Even if none of these can better Amazon, collectively they're bound to eat into Amazon sales.

kennyc · 10-22-2009, 09:17 PM

Thanks for that Brian!

Kali Yuga · 10-22-2009, 09:25 PM

Maike13, you're presuming that the ebook market is a zero-sum game -- i.e. each Nook sold means one less Kindle sold. That's very unlikely to be the case, given how small the ebook market is. Even if an individual is only going to get one or the other, more likely is that B&N's entry will just expand the market.

Amazon has had plenty of competition, by the way, mainly from Sony -- who put out their readers a full year earlier. Amazon just blew past them in fairly short order.

And B&N, Sony and Amazon are all reacting to each other's moves at the moment. That's how "competition" works, and to me it's a sign of a lot of energy and interest in the field.

The real problem with any evaluation is that no one is releasing sales data; retailers are obfuscating and everyone else is left guessing....

10-22-2009, 09:09 PM	#4
Maike13 Connoisseur Posts: 64 Karma: 28 Join Date: Oct 2009 Location: Houston, USA Device: IRex Iliad 1st Ed.	Hmm... indeed. I can't quite share the rosy outlook. Amazon offers an iPhone app. B&N already has app for iPhone, iTouch, Blackbery, PC and Mac. An Android version can't be far off. Amazon launches the international Kindle2 Should have done this a long time ago Amazon cuts the price of the iKindle and refunds $20 for previously purchased units without being asked to. Looks awfully like a reaction to match B&N Nook price. Amazon having to react to other vendors moves is not a positive sign. Amazon promises an international DX early in 2010 Good move but I hope Amazon has Kindle 3 and DX equivalent in the works Refurbished K1's, K2's, and DX's are selling at deep discounts. Limited supply won't do much for the bottom line Amazon drops book prices to outsell Walmart, etc. Again, Amazon forced to react to other vendors moves. The number of Kindle books available continues increasing - to now over 350,000. Good numbers but will readers tire of Kindles closed format And then - the Kindle Reader on the PC, with a Mac version promised to follow soon. No Kindle required to buy & read Kindle books. Again, B&N already has app for iPhone, iTouch, Blackbery, PC and Mac 2009 will be a very good year for Bezos & company. But 2010 looks a lot cloudier. Amazon has done great with almost no competition. It remains to be seen how they can do with Walmart, B&N, Google, maybe Apple, and others now seriously gunning for them. Even if none of these can better Amazon, collectively they're bound to eat into Amazon sales. Last edited by Maike13; 10-22-2009 at 09:19 PM.

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10-22-2009, 08:10 PM	#2
poohbear_nc Now what? Posts: 58,805 Karma: 135181808 Join Date: Feb 2009 Location: Durham, NC Device: Every Kindle Ever Made & To Be Made!	Hmm... Amazon offers an iPhone app. Amazon launches the international Kindle2 Amazon cuts the price of the iKindle and refunds $20 for previously purchased units without being asked to. Amazon promises an international DX early in 2010 Refurbished K1's, K2's, and DX's are selling at deep discounts. Amazon drops book prices to outsell Walmart, etc. The number of Kindle books available continues increasing - to now over 350,000. And then - the Kindle Reader on the PC, with a Mac version promised to follow soon. No Kindle required to buy & read Kindle books. I don't doubt that 2009 will be a very good year for Bezos & company. This is quite a record for a single company in 1 year.

10-22-2009, 08:24 PM	#3
Kali Yuga Professional Contrarian Posts: 2,045 Karma: 3289631 Join Date: Mar 2009 Device: Kindle 4 No Touchie	So am I reading it correctly, in that the estimate is the Kindle is responsible for possibly up to $464 million in revenues for Kindle hardware, and up to $183 million for ebooks, in Q3?

10-22-2009, 09:17 PM	#5
kennyc The Dank Side of the Moon Posts: 35,872 Karma: 118716293 Join Date: Sep 2009 Location: Denver, CO Device: Kindle2; Kindle Fire	Thanks for that Brian!

10-22-2009, 09:25 PM	#6
Kali Yuga Professional Contrarian Posts: 2,045 Karma: 3289631 Join Date: Mar 2009 Device: Kindle 4 No Touchie	Maike13, you're presuming that the ebook market is a zero-sum game -- i.e. each Nook sold means one less Kindle sold. That's very unlikely to be the case, given how small the ebook market is. Even if an individual is only going to get one or the other, more likely is that B&N's entry will just expand the market. Amazon has had plenty of competition, by the way, mainly from Sony -- who put out their readers a full year earlier. Amazon just blew past them in fairly short order. And B&N, Sony and Amazon are all reacting to each other's moves at the moment. That's how "competition" works, and to me it's a sign of a lot of energy and interest in the field. The real problem with any evaluation is that no one is releasing sales data; retailers are obfuscating and everyone else is left guessing....

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