Amazon reported record third quarter figures recently. Net income was up 70% on last year at $199 million. Revenues and profits were both in excess of predicted values and a strong fourth quarter is now anticipated. The share price was up by 27% following the announcement as analysts predicted that Amazon would become the dominant web based retail outlet in the near future.
One of the key factors in Amazon's success has undoubtedly been the success of the Amazon Kindle e-book reader. The Kindle, originally released in 2007 and now in its second generation, accounts for 60% of the US e-book reader market. After a long wait Amazon has started to ship the Kindle 2 reader to more than 100 different countries around the world. International shipping was accompanied by a second price drop since the launch of the Kindle 2 in February of 2009.
The announcement of international shipping was accompanied by a second price reduction. A third reduction to $259 followed less than two weeks later - and this was considered by many to be a reaction to the announcement of the "Nook" e-book reader by Barnes and Noble. Whatever the reasons, a focus on the huge worldwide market makes a lot of sense and can only further boost Amazon's sales.
Apple, Microsoft, Plastic Logic and Sony all have e-book readers either in development or ready for imminent launch. The e-book market is still nascent, and it is developing and growing rapidly. Amazon have, thus far at least, enjoyed a dominant position - and the Kindle reader is now their best selling product. It does not seem at all probable that they will be inactive whilst other manufacturers overtake them.
Of course, Amazon have other profit generators over and above the Kindle. Membership of Amazon Prime - which offers better delivery options for a one off yearly payment - also saw very strong growth. Growth was highest in international markets.
A spokesman for Amazon said that Amazon would continue to grow its product range and look to expand its business geographically over time.
Sales in the range of $ 8.13 billion to $ 9.13 billion are forecast for the fourth quarter. - 31403
One of the key factors in Amazon's success has undoubtedly been the success of the Amazon Kindle e-book reader. The Kindle, originally released in 2007 and now in its second generation, accounts for 60% of the US e-book reader market. After a long wait Amazon has started to ship the Kindle 2 reader to more than 100 different countries around the world. International shipping was accompanied by a second price drop since the launch of the Kindle 2 in February of 2009.
The announcement of international shipping was accompanied by a second price reduction. A third reduction to $259 followed less than two weeks later - and this was considered by many to be a reaction to the announcement of the "Nook" e-book reader by Barnes and Noble. Whatever the reasons, a focus on the huge worldwide market makes a lot of sense and can only further boost Amazon's sales.
Apple, Microsoft, Plastic Logic and Sony all have e-book readers either in development or ready for imminent launch. The e-book market is still nascent, and it is developing and growing rapidly. Amazon have, thus far at least, enjoyed a dominant position - and the Kindle reader is now their best selling product. It does not seem at all probable that they will be inactive whilst other manufacturers overtake them.
Of course, Amazon have other profit generators over and above the Kindle. Membership of Amazon Prime - which offers better delivery options for a one off yearly payment - also saw very strong growth. Growth was highest in international markets.
A spokesman for Amazon said that Amazon would continue to grow its product range and look to expand its business geographically over time.
Sales in the range of $ 8.13 billion to $ 9.13 billion are forecast for the fourth quarter. - 31403
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Learn more about the Amazon Kindle international version. See which countries it ships to and check out the average price of books, the wireless coverage and more.
