July 26, 2010
Why Have Amazon Made It So Easy To Read Kindle Books Without A Kindle?
Amazon, using their Kindle reader family as a vehicle, has been a major player in the development of both the e-book reader and e-book market. The first Kindle was released in November of 2007. In February of 2009, the updated and enhanced Kindle 2.0 hit the market, quickly followed by the large format Kindle DX in the summer of the same year.
The Kindle readers dominated the market and took a 60% share of all e-book reader sales in the USA. The Sony reader, which was actually launched in 2006 before the Kindle, followed in second place with a share of around 35%. Other companies saw the potential of the e-book reader market and launched or updated their own readers to get a slice of the pie.
Competitors like Plastic Logic, Sony, Bookeen, iRex and Barnes and Noble fought for their share of the rapidly growing market, but Amazon’s lead position seemed to be almost impregnable. It was only with the launch of the Apple iPad that any credible competition emerged – slightly surprising since the two devices are very different and are, you would suppose, aimed at different market segments.
Since the launch of the iPad, e-book reader prices have fallen quite some way. The Kindle 2.0 is currently selling for just $ 189, a huge reduction over the $ 359 launch price of February 2009. The large format Kindle DX has been upgraded, being fitted with a new improved screen, and has had a price reduction from $ 489 to just $ 379. Barnes and Noble have also dropped the price of their Nook reader from $ 259 to $ 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.
Although Amazon had to modify their approach, it wasn’t all bad news for them – or for Barnes and Noble either. Amazon had always given the impression that they were much more interested in book sales – and e-book sales – than they were in hardware sales. How else to explain the fact that they had bent over backwards to make it possible to read Kindle books on such a wide variety of different devices? It’s possible to read Kindle books on the PC, the Mac, the iPod Touch, the iPhone, the iPad, the Blackberry and any mobile device that runs Android. The latest price movements mean that Amazon, and other companies such as Barnes and Noble – and now Apple – who have a significant stake not just in the sale of hardware but also in the sale of e-books, can adopt a policy of selling the hardware cheap and making their profit in the sale of e-books over the life of the reading device.
Companies which sell books and hardware may have a distinct advantage over hardware manufacturers in the near future. Looking at the huge number of different devices (outlets) that Kindle books can be read on, it seems likely that Amazon are going to have a big say in the future development of digital publishing going forward.
Learn more about the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you personalise your reader.
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