Kindle is Amazon’s Golden Cow
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A lot of people were skeptical of Kindle’s prospects when it was announced by Amazon a few years ago. People are now realizing what a great move that was for the company. Amazon Kindle has taken the company to new heights, leading to a ton of e-book sales each and every month. As Caris analyst Sandeep Aggarwal put it, Kindle is simply the most compelling ebook reader on the market. According to him, Kindle-generated revenue will top $5.4b in 2011 and could get close to $8b by the end of 2012.
Amazon has been doing a decent job adding more titles to Kindle store. At the time of this writing, over 900k titles are available in this store. The way Amazon has been adding e-books, Kindle store will have over 1M titles in no time. Kindle software for various platforms such as iOS and Android have only helped the company’s bottom-line.
We think that Kindle not only helps to remove multiple costs and inefficiencies in the traditional book printing and distribution business (e.g. print and fulfillment costs, back order risk, and inventory management) but also increases propensity to buy books/content and other adjacent products due to convenience and 24/7 access,
said Sandeep Aggarwal. Of course, we all want Amazon to be challenged by companies such as B&N to stay on its “A” game. But there is no question Kindle has helped grow the e-book industry dramatically in the past couple of years. With enhanced e-books on the way, the only place for the industry to go is up.
