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Amazon may sell just 500K Kindles this year

updated 04:05 pm EST, Wed February 25, 2009

JPMorgan sees 500K Kindles

In spite of a major redesign effort, Amazon isn't likely to experience the iPod-like growth curve in Kindle 2 sales that some expect, a research note from JPMorgan says today. Analyst Imran Khan expects the retailer to sell only 500,000 of the e-book readers this year and thus that the company will grow relatively little from its sales of the first-generation Kindle in 2008. Amazon has been hesitant to provide definitive numbers for the original reader despite frequent sellouts.

As a consequence, Amazon would ultimately make little money from the Kindle 2 relative to the rest of its business, even if customers are regular customers of Amazon's online book store. If 1 million owners each bought a typical $8 book once per month, the income would only result in about 5 cents extra earnings per share for the entire year.

Amazon has pushed the Kindle 2 as an alternative to other mobile devices for reading and is specifically touting it as a lower-priced alternative to audiobooks through a text-to-speech feature that automatically reads books out loud. The company has also faced minor pressure from readers for the iPhone that, while limited to a smaller screen, often provide older books for free.




by MacNN Staff

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Comments

  1. martinX

    Joined: Dec 1969

    +1

    What a guy

    From cricketer to politician to tech analyst. Is there nothing Imran Khan can't do?

  1. testudo

    Joined: Dec 1969

    0

    umm

    The company has also faced minor pressure from readers for the iPhone that, while limited to a smaller screen, often provide older books for free.

    You can get all those older books for free and put them on the kindle as well. Takes an extra piece of effort to convert them to Kindle format.

  1. slider

    Joined: Dec 1969

    -1

    It's Not an iPod

    I like what Amazon is doing with the Kindle, but it's a niche market. I read like mad, but most people don't read enough to justify a Kindle. I'd probably have bought one if they had ditched the keyboard for a virtual one. When the Kindle 2 came out I checked to see if any of the titles/authors I read were available - Nope. I like the overall package and ability to have a virtual newspaper, but it's still not for me.

  1. LouZer

    Joined: Dec 1969

    0

    Re: its not an ipod

    Don't blame the kindle for lack of titles. That goes right to the authors/publishers...

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