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.
The Kindle became Amazon’s most gifted item ever over the 2009 festive season – and, on Christmas day of the same year, Kindle book downloads outnumbered orders for physical books for the first time ever. This was probably due to those people who were lucky enough to receive a Kindle as a gift trying it out – and a lot of the downloads would have been free – but it was still a landmark event for both Amazon and the Kindle.
Despite the huge success of the Kindle reader, there were times when Amazon appeared to be a somewhat reluctant manufacturer. They went to a great deal of trouble to make sure that Kindle books could be read on a wide variety of different devices by people who didn’t own Kindles. Currently there are free Kindle “Apps” for the PC, the Mac, the iPod Touch, the iPhone, the new iPad, the Blackberry and any device running Android. At times, Amazon looked to be in competition with itself.
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.