Quote:
Originally Posted by Alexander Turcic
Alright, a statement we've already heard before with no meaningful results, so take it with a grain of salt. Or a whole salt lick, actually. This time around, there is this guy from Seeking Alpha (a well-respected financial blog network), Prashanth Cherukuri, who makes no secret of being short in Amazon stock (i.e. betting on a decline to get a lot of money out of it), and who believes that everything we've heard so far about the Kindle's success is nothing but a fairy tale.
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We believe what we
want to believe.
Not seeing a Kindle in the wild is no proof of anything. I've seen one or two Sony Readers while commuting, but most of what I see are Blackberries, cell phones and hand-held game devices like the DS Lite,
I agree that the Kindle isn't a major source of revenue for Amazon
now. But Amazon can use it's market position to leverage it. You get much better pricing on ebooks in the Kindle store than you do from other vendors, but you have to have a Kindle to read them. Care to bet that
isn't helping drive Kindle sales? I wouldn't.
Until Amazon releases any actual numbers on revenue derived from Kindle sales, it's all guessing games anyway. But the Kindle is a very minor venture for Amazon in terms of revenue and profit. If they decided it wasn't meeting expectations and killed it tomorrow, I doubt their stock price would be affected.
Amazon is a huge retailer and distributor. I see the Kindle as an experiment on how to leverage their web based retail infrastructure to profitably handle electronic content. The bigger question is what else they might handle.
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Dennis