Since its November 2007 launch, the Amazon Kindle reader has been a great product for the company. The strong association that Amazon has with both books and electronics makes it the perfect product for their business model. After the release of the upgraded Kindle 2.0 in February of 2009, followed by the release of the large display Kindle DX model in the summer of the same year, the Kindle went on to become Amazon’s best selling product.
During the 2009 festive season, the Kindle became Amazon’s most gifted product ever. On Christmas day 2009, Amazon sold more Kindle books than they did physical ones for the first time. In all probability this would have been due to people who had got a gift of a Kindle downloading a book or two to try it out. Nevertheless, it was a noteworthy event for both Amazon and the Kindle.
However, there were times when it seemed as if Amazon was a somewhat reluctant manufacturer. They went out of their way to make sure that Kindle books could be read – even without a Kindle reader. Currently, Amazon has released Kindle “Apps” for a huge number of alternative devices. These include the PC, the Mac, the iPod Touch, the iPhone, the new iPad, the Blackberry and any device which runs Android. On the face of it, Amazon seemed to be their own main competition.
However, the reasoning behind Amazon’s open policy became clear with the release of the Apple iPad. Among its many features, the iPad can be used to read e-books, and the price of e-book readers went into free fall as Apple enthusiasts rushed to get their hands on Apple’s new device. However, even as e-book reader prices were plummeting, the average price of the e-books for use with them was climbing.
This was chiefly due to a deal struck between Apple and the major publishing houses. Apple agreed to let publishers set the price for their e-book editions at whatever level they liked, as long as they didn’t offer the e-book at a lower price on any other reader. Amazon’s policy of selling all e-books for $ 9.99 or less was in tatters. At first glance it looked as if the iPad was to be Amazon’s nemesis, both in terms of Kindle reader hardware and e-book sales.
However, upon closer inspection, it becomes clear that Amazon’s policy of releasing free Kindle Apps for just about every device known to man was a master stroke. Each App is nothing more than an outlet for Kindle books and, given that the price of these is increasing, Amazon can now afford to drop the price3 of their Kindle reader hardware secure in the knowledge that they will make a profit from the sale of e-books over the lifetime of the reader. For that matter, even if the iPad – or any other reader – seriously dented the sale of Kindle readers, Amazon would continue to sell their Kindle books.
Learn more about the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you personalise and protect your reader.