Chatter about Amazon's Kindle reveals nothing
- TAGS:Amazon, e-books, Kindle
- IT TOPICS:Mobile & Wireless
MYKONOS, GREECE -- Everyone's talking about Amazon Kindle sales -- everyone except Amazon, that is. Sure, Amazon CEO Jeff Bezos' mouth is moving. He just isn't saying anything. Bezos said at the Wall Street Journal's All Things Digital conference this week that "There will be a second version, a third version, a tenth version" (presumably there won't be fourth through ninth versions).
Very informative, Jeff! He made a point of saying that the second version won't come out anytime soon (CEO-speak for "keep buying the first version, people."). Amazon recently dropped the price of the Kindle by 10 percent, and picked up the cost of two-day shipping. One theory (mine, actually) is that they may want to clear out their new-found inventory to make way for a badly needed second version, despite Bezos' comments to the contrary.
Bezos also gave a percentage associated with e-Book sales: 6 percent. That's the percentage of sales that were electronic among the 125,000 titles available in both print and electronic formats. (I'd be more interested in relative profit margins for both publishers and Amazon.com, but I'm quite sure that information won't be coming out anytime soon.)
Back in March, I ripped into Amazon for hiding its unit sales numbers -- how many Kindles it has sold. Since then, analysts are coming out of the woodwork to hawk their own guestimates. CitiGroup analyst Mark Mahaney estimates that Amazon sold between 10,000 and 30,000 e-readers during Q1. Goldman's James Mitchell thinks the company sold between 25,000 and 50,000 during the same quarter.
In other words, we still have no idea how many Kindles Amazon has sold.
Mahaney also predicts that the Kindle will earn Amazon some three-quarters of a billion dollars within two years -- about 3 percent of Amazon's business. That's not in Kindle sales, but combined Kindle and e-Book sales, as well as newspaper, magazine and blog subscriptions.
With all this chatter about Kindle numbers, the fact remains that it's all pure speculation, hype and bull$#@! We still don't have a clue how the Kindle is doing, how lucrative it is for publishers or Amazon -- or if it's clobbering the competition or not.
I wish Amazon would just come clean and tell us how this thing is doing.
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