MCSE 2003 Training

Amazon reported record third quarter figures recently. Net income was up 70% on last year at $199 million. Revenues and profits were both in excess of predicted values and a strong fourth quarter is now anticipated. The share price was up by 27% following the announcement as analysts predicted that Amazon would become the dominant web based retail outlet in the near future.

One of the key factors in Amazon’s success has undoubtedly been the success of the Amazon Kindle e-book reader. The Kindle, originally released in 2007 and now in its second generation, accounts for 60% of the US e-book reader market. After a long wait Amazon has started to ship the Kindle 2 reader to more than 100 different countries around the world. International shipping was accompanied by a second price drop since the launch of the Kindle 2 in February of 2009.

The announcement of international shipping was accompanied by a second price reduction. A third reduction to $259 followed less than two weeks later - and this was considered by many to be a reaction to the announcement of the “Nook” e-book reader by Barnes and Noble. Whatever the reasons, a focus on the huge worldwide market makes a lot of sense and can only further boost Amazon’s sales.

Apple, Sony, Asus and Apple all have new e-book readers in various stages of development. The e-book market may be relatively new, but it is changing and growing at exponential speed. Considering the domination of Amazon thus far, and the fact that the Kindle is now their number one selling product, it seems unlikely that Amazon will rest on its laurels and watch other manufacturers speed by it (just as Amazon themselves leapfrogged Sony a couple of years ago).

Of course, Amazon have other profit generators over and above the Kindle. Membership of Amazon Prime - which offers better delivery options for a one off yearly payment - also saw very strong growth. Growth was highest in international markets.

An Amazon spokesman advised that analysts could expect to see Amazon expand the range of products on offer - probably accompanied by geographical expansion with time.

Sales in the range of $ 8.13 billion to $ 9.13 billion are forecast for the fourth quarter.

Learn more about the Amazon Kindle reader.