The Amazon Kindle reader has been instrumental in the development of the e-book reader and e-book market. The original Kindle launched in November of 2007. The Kindle 2.0 was released in February of 2009 and the large format Kindle DX followed 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.
Manufacturers like Bookeen, Plastic Logic, Sony and Barnes and Noble worked hard to get their share of the rapidly developing market, but the dominance of the Kindle seemed pretty well established, if not unassailable. It was only when Apple launched their iPad that the Kindle faced any credible competition – despite the fact that the two devices were very different and, you would think, aimed at different target markets.
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.
The launch of the iPad may, or may not, have been instrumental in producing widespread reductions in the ticket price of e-book readers, but it was clearly a major factor in pushing the price of the e-books to read on these devices upwards. Apple had set up its own book store prior to the launch of the iPad and had negotiated a deal with the major publishing firms which allowed them to fix the price of their e-book editions at whatever level they wanted – as long as the e-book was not made available on any other platform for a lower price. This pretty much killed the Amazon policy of setting e-book prices at $ 9.99 or less and was a welcome development for the publishers who were concerned about their profits reducing.
Amazon may have had to abandon their low e-book price policy – but that wasn’t necessarily a disaster for them. Considering the way that Amazon have made it possible to read Kindle books on such a wide variety of different devices – you can use the PC, the Mac, the iPod Touch, the iPhone, the iPad, your Blackberry and any device which runs Android to read Kindle books right now (and no doubt there will be further additions in future) – it must be obvious that Amazon are more interested in book sales than hardware sales. The latest downward price movement for e-book readers and simultaneous price increase for e-books means that they can now sell the hardware for less and make their profit by selling e-books over the life of the hardware. The same will apply for Barnes and Noble and Apple themselves of course.
This trend may tend to favor companies which have a foot in both the book and hardware sales camps. Considering the current number of devices which can be used to read Kindle books, it looks as if Amazon will be a major player in the future of digital publishing for some time to come.
Learn more about the Amazon Kindle reader for yourself and view the broad range of Kindle accessories available to help you personalise your reader.
