Posts Tagged ‘electrical items’

How Amazon Will Maintain Their Dominant Position In The E-Book Market - Despite The IPad

Tuesday, July 13th, 2010

Amazon has been an important, quite possibly the most important, player in the development of digital publishing using both their Kindle reader family and their huge library of Kindle books as development and marketing tools. November 2007 saw the launch of the original Kindle. Amazon followed up with the upgraded Kindle 2.0 in February of 2009, and the large display Kindle DX model launched in the summer of 2009.

With a market share of 60% of all e-book readers sold in the USA, the Kindle readers dominated the market. Sony trailed in second place with a still respectable 35% share. Needless to say, other electronics manufacturers quickly saw the potential in the nascent e-book reader market and either developed or updated their own readers.

Companies such as Sony, Barnes and Noble, Bookeen, Plastic Logic and iRex did their best to get their share of the new and fast developing e-book market, but the Kindle’s dominance looked to be pretty much unassailable. It wasn’t until the launch of the Apple iPad that the Kindle had any credible competition - even although the two devices were very different and would appeal, you would imagine, to different audiences.

Differences in the devices and their intended applications notwithstanding, e-book reader prices have tumbled since the launch of the iPad. You can now pick up the Kindle 2.0 for just $ 189 - a huge reduction over the launch price of $ 359 - and a significant drop from the pre-iPad price of $ 259. The newly upgraded Kindle DX can be yours for just $ 379, down from $ 489. Barnes and Noble’s Nook reader is now on sale at just $ 199.

Although the iPad seems to have provoked a round of price cuts among the manufacturers of e-books, the same cannot be said about the price of the e-books to read on these devices. Prior to the launch of the iPad, Apple had negotiated a deal with the major publishing houses which let them set the price of their e-book editions at pretty much whatever they wanted - as long as they did not allow the same e-book to be offered cheaper on any other platform. This was seen as good news by the publishers, who had been unhappy with Amazon’s policy of selling all e-books for $ 9.99 or less.

Amazon had to back down from this - but it’s not necessarily a bad thing for them, or Barnes and Noble for that matter. Amazon has always appeared to be more interested in selling books - and e-books - rather than hardware. That’s the only possible explanation for the fact that they have made it possible to read Kindle books on so many different devices. At the moment, you can read Kindle books on the PC, the Mac, your Blackberry, the iPod Touch, the iPad and any mobile device running Android. So companies like Barnes and Noble, Amazon and now Apple, who have a stake in the future sale of e-books over the life of a reader, can afford to sell the hardware cheaper and profit over the life of the device.

It may be that the future pricing of e-book readers and e-books will tend to favor such companies over manufacturers who are involved only in hardware production. Looking at the number of different devices which Kindle books can be read on, you would have to suspect that, whether or not the iPad becomes the reader of choice for many users, Amazon will continue to have a huge say in the future of books and e-books for the foreseeable future.

Check out the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you personalise your reader.