Quote:
Originally Posted by =X=
However there will be an increase in the purchasing of Kindles.
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I think it's the opposite. Here are some of the reasons:
* The competitors' offering are getting stronger. Low cost e-readers are coming if their manufacturers can survive.
* The market for dedicated e-readers, small to start with, is saturating. Most avid readers already have at least one.
* Ipad sold 3 million in 80 days. The 10 million first year target now seems conservative. In about a year, total number of kindles will only be a fraction of Ipads. Not to mention Ipad wannabes and Pixel Qi devices (if they ever come to market.).
The e-books (software) pie will explode in the next few years, but how much amazon can capture the growth? It used to be the dominant player in this area. Soon it will be one of the surviving players grabbing whatever left by Ipad. Wall street is all about growth prospect and leadership. Therefore the downgrade based on e-book market is justified.