Showing posts with label Amazon. Show all posts
Showing posts with label Amazon. Show all posts

Monday, June 09, 2008

Amazon Kindle: buyers rush for the iPod of ebooks

THE new generation of electronic books – ebooks – has fired a revolution even before they go on sale in Britain. Such is the sudden success in the United States of the Amazon Kindle, a reading device capable of storing 200 books, that UK buyers are bidding for them on eBay in the hope of shipping them over.



Although the US versions will not be fully operational in Britain, the Kindle is rapidly taking on the must-have aura of Apple’s iPod. After many false dawns, publishers fear the ebook could finally do to the book trade what the iPod has done to the music industry: turn it upside down.

One UK literary agent said: “It’s a tremendously exciting time. I can imagine a world where I would sell books direct from an author’s website.”

Another said: “Amazon clearly wants the Kindle to be the iPod of the book business.”

The Kindle, which is expected to go on sale in the UK later this year, has surprised US publishers and authors by how rapidly it has moved into the mainstream. Pat Schroeder, president of the Association of American Publishers, said: “I think people initially thought it would attract young people. But old people like it, too.”

The Kindle allows the user to increase the type size, making books easier to read for older people with impaired eyesight. When Walter Isaacson, former chairman of CNN and managing editor of Time magazine, acquired a Kindle, he soon found that his 84-year-old father and his 86-year-old father-in-law were asking for one as well as his 18-year-old daughter.

In the six months since the Kindle went on sale in the United States, it has grabbed a significant chunk of book sales. Jeffrey Bezos, founder of Amazon, said last week that the Kindle was already taking 6% of sales of books that were available in both traditional print and new electronic form.

Electronic readers of one sort or another have been around for years but the Kindle, and its rival the Sony Reader, deliver a quality and ease of use that seem to have mass appeal. The International Digital Publishing Forum, a trade group for ebook sellers, estimates that sales in March 2008 were 59% higher than in March 2007.

More than 125,000 titles are available for downloading and Simon & Schuster, the publisher, said it would add a further 5,000 titles this year.

In 2006 Harlequin Enterprises, the world’s biggest romance publisher, which sells 130m books a year, released eight titles in electronic form. Last year it decided to make all its titles available in both traditional and ebook formats.

“We blew away a lot of people’s expectations about ebooks,” said Brent Lewis, vice-president of digital and internet for Harlequin. Growing numbers of the company’s customers, he said, are reading romances on the Kindle, the Sony Reader or a mobile phone. In Japan all Harlequin’s ebooks are sold directly to customers’ mobiles.

Amazon has not decided how much ebooks for the Kindle will cost in Britain, but in America new releases and bestsellers, for example, typically cost $9.99 (£5), compared with £7.50-£10 for traditional volumes bought through the company’s website.

The Kindle, which costs $359 (£182) in America, has built-in free wireless internet connection, allowing users to download titles direct from Amazon’s website. Other firms’ readers require ebooks to be downloaded onto a computer and then transferred.

The pace of change, and Amazon’s aggressive lead, are unnerving British authors and publishers. They fear Amazon will use its dominance to squeeze them. Publishers sell books to retailers at a discount off the cover price. While 20 years ago this was about 35%-40%, Waterstone’s and Amazon now expect discounts of 50%-55%.

A pricing dispute recently led the online retailer to refuse to sell new copies of books such as Labyrinth by Kate Mosse and The 6th Target by James Patterson. The website removed its “buy now” button from about 60 books by authors of the publisher Hachette Livre UK, which also publishes Patricia Cornwell, the crime writer.

Tracy Chevalier, the historical novelist who chairs the Society of Authors, said: “What is unusual here is, Amazon is saying: ‘We are not going to sell these books.’ It’s greatly disappointing that Amazon would choose to punish authors in this way.”

Thursday, November 29, 2007

Amazon launches info sharing Web site Askville.com

NEW YORK, Nov 29 (Reuters) - Amazon.com Inc (AMZN.O: Quote, Profile, Research), the world's largest Web retailer, launched Askville.com, an information-sharing Web site where users can ask questions and answer queries from others, on Thursday.

The site, open to all of its customers, has been in beta testing since December 2006 and has already been open to a few users, Amazon said.

Similar services are offered by Yahoo Inc's (YHOO.O: Quote, Profile, Research) Answers and other Web sites such as AnswerBank. Google Inc (GOOG.O: Quote, Profile, Research) also had an "Answers" section, which has been discontinued.

Wednesday, June 13, 2007

Amazon Grocery Beta

  • More than 22,000 non-perishable items--and growing every day
  • All items eligible for free shipping
  • Great everyday prices on your favorite brands
  • Shipped to your door, just like any other Amazon.com purchase
  • Learn more
  • Tuesday, April 24, 2007

    Amazon profit doubles on 32% rise in sales

    Shares jump in after-hours as results beat Wall Street's estimates

    SAN FRANCISCO (MarketWatch) - Amazon.com Inc., the world's largest Internet retailer, late Tuesday reported that first-quarter profit more than doubled and sales jumped 32% as the Seattle-based company sold more goods through its Web site.
    For the quarter ended March 31, Amazon (AMZN :
    Amazon.com, Inc
    Last: 44.75-0.02-0.04%
    8:00pm 04/24/2007
    Delayed quote data

    AMZN44.75, -0.02, 0.0% ) reported a profit of $111 million, or 26 cents a share, compared to the $51 million or 12 cents a share a year ago.
    Sales rose 32% to $3 billion, compared to the $2.28 billion from a year ago.
    Wall Street was expecting earnings of 15 cents a share on sales of $2.92 billion, according to consensus estimates from Thomson Financial.
    Shares of Amazon rose 12% in late trading to $50.05. The stock has risen about 20% since the company last reported quarterly results.
    Amazon benefited mainly from a 5% surge in traffic to its retailing sites, which during its first quarter grew at a rate second only to eBay Inc.

    EBAY
    33.76, +0.24, +0.7% )
    in the electronic-commerce sector, according to an analysis from Bear Stearns.
    More traffic translated into more purchases, according to Nielsen//NetRatings, which on Tuesday said the number of items purchased on Amazon jumped 12% from the same period last year, to 23.1 million from 20.6 million.
    The results also got a boost by stronger sales of electronics, which jumped 48% to around $947 million, and increased to 31% of worldwide sales, compared to 28% a year ago.
    Sales outside the United States jumped by 35% to $1.4 billion, while domestic sales grew 30% to $1.62 billion.
    Amazon.com Chief Executive Officer Jeff Bezos said, in a statement, that the results were also boosted by growing traction for Amazon Prime, which is the company's first-subscription based feature that offers lower shipping rates, and easier checkout.
    A jump in interest income also benefited Amazon's bottom line.
    One of the most watch Amazon metric its margins, which is a measure of how much it profits from the sale of an item.
    According to Citigroup analyst Mark Mahaney, Amazon's operating margin for the quarter was 5.9%, which is "materially higher" that what Wall Street expected and the result of a more positive contribution from Amazon.com's international sales.
    "This marked the first quarter of year-on-year margin expansion since the second quarter of 2004," Mahaney said, in a note to clients. He rates Amazon as a sell.
    Goldman Sachs analyst Anthony Noto, also commenting about margins, called the results the "first clear positive for the shares." He rates Amazon shares as "neutral."
    Amazon also tried to soothe investor concerns about Amazon's capital spending, which has helped to contribute to the company's relatively high margins.
    In a conference call following the earnings release, Bezos said capital spending is sure to increase in 2007, as Amazon invests in new features such as its Unbox video store, but at a rate far less than last year.
    "As we move forward, certainly still working very hard for further cost improvements," Bezos said, on the conference call.
    The company also somewhat tightened its guidance for its second quarter, now projecting revenue in the range of $2.7 billion to $2.85 billion. The company previously had projected revenue in the range of $2.8 billion to $3 billion.
    Analysts, meanwhile, had been expecting revenue of $2.69 billion for the second quarter.
    The revenue forecast represents growing sales from its aggressive pricing and promotions, and tempered by a postal-rate increase to go into effect in May.
    For the year, Amazon said it expects sales of $13.4 billion to $14 billion, representing an annual growth rate of between 25% and 31%. The range is slightly higher than the $13.37 billion predicted by analysts.
    Amazon also increased its operating income projection for the year to between $463 million and $593 million. The operating income projection includes about $170 million in what Amazon describes as amortization of intangible assets.
    The company said previously that operating income would come in be between $355 million and $505 million, or ranging from a decline of 9% to a gain of around 30% growth.
    Amazon also said Tuesday that its board had approved a $500 million share buyback, which will take place over the next two years.
    "The $500 million in buybacks should be an additional positive for the shares," said Goldman Sachs' Noto.