Ray Gustini at The Atlantic with a round-up. Gustini:
Amazon announced Monday that, over the past three months, Kindle book sales outnumbered those of hardcover books for the first time in the company’s history. The announcement comes less than a month after the company slashed the price of its flagship e-book reader from $259 to $189 amidst growing competition from Apple’s iPad. So far, the move seems to have paid off–Amazon CEO Jeff Bezos said Kindle sales have tripled since the price cut.
Charlie Sorrel at Wired:
As reported by my silver-tongued editor Dylan Tweney over on Epicenter [ED: flattery will get you nowhere], this has accelerated in the last month, with Amazon shifting 180 Kindle copies for every 100 hardbacks, and this is due to the price drop which saw the Kindle go from an expensive $260 to an affordable $190. Breaking the magic $200 mark has caused Kindle sales to rocket. Bezos again: “The growth rate of Kindle device unit sales has tripled since we lowered the price from $259 to $189.”
While the “growth rate of unit sales” is far too cryptic a metric to go by (note that the actual sales have not tripled) it shows that people are ready for e-books and e-readers, if they are priced right. It also shows that they completely disregard the big advantage of the paper book: buy it and it is yours. Whereas a Kindle book is pretty much still the property of Amazon, and can be deleted from afar whenever it likes, a paper book can be lent, resold and used to prop up a wobbly table.
The same limitations never held up the iTunes MP3 store, however. And the fact that you can read your Kindle books on almost any platform certainly helps to hide these problems. One thing is certain: with the number of e-book-capable screens we carry around today, it won’t be long before the paperbacks also fall into a minority market.
MG Sielger at TechCrunch:
Amazon also says that it sold three times as many Kindle books in the first half of 2010 as it did in the first half of 2009. The store now has over 630,000 books available for the Kindle. And over 510,000 of those are $9.99 or less — one clear advantage over Apple’s iBookstore, which is more expensive. Plus, Amazon has access to over 1.8 million free, out-of-copyright, pre-1923 books for the device.
Also interesting is that there have been five authors now that have sold over 500,000 Kindle version of their books: Charlaine Harris, Stieg Larsson, Stephenie Meyer, James Patterson, and Nora Roberts.
Earlier this month, Amazon also announced that an updated version its larger DX model with a better screen and a black frame.
All that said, Amazon is going to have a tough battle competing in hardware with the likes of Apple going forward. The Kindle, while great for reading, still offers only a fraction of what the iPad can do (and even Amazon highlights this). And I suspect another Kindle price cut down to $99 may be coming sometime in the next year. If Apple stays at $499 for the iPad, that should be enough to differentiate itself for a while. Amazon is also smart to offer its Kindle software on devices like the iPad, iPhone, and Android phones. This ensure that Amazon’s future in the book business will remain intact whether or not they’re the ones in charge of the hardware.
Also, why is Amazon issuing press releases about these numbers? They’ve famously shied away from saying much about the Kindle sales in the past. Of course, they weren’t the subject of a weekly “iPad is killing Kindle” story in the past.
Chris Morran at The Consumerist
Jared Newman at Technologizer:
I hope book publishers are encouraged, not frightened, by the news. They should be converting books into electronic form faster than ever to capitalize on the e-reader craze. But they might also liken e-books to paperbacks — both are less profitable than hardcovers — by delaying the digital versions to drum up hardcover sales.
Delaying the digital version of books is a bad move because there’s nothing comparable to hardcovers available in digital form. If publishers want to charge more for new releases — and they can with the agency model, which allows several major publishers to set their own e-book prices — that’s fine. But as Amazon’s latest numbers show, Kindle owners are determined to build their e-book libraries, and publishers should do everything they can not to hold those readers back.
I now have an iPad and a Kindle, and while I think the Kindle reader for iPad is terrific, the device itself is too fragile for many uses, and the shinyness of the screen is a serious problem, because I can’t easily use it outside, or even in front of a big window. I wouldn’t want to have just one or the other.
And ultimately, I’m not sure how much Amazon cares how much profit it makes on the Kindle–the machine is a way to sell more content, not a profit center on its own. So far, Apple is trying to pull all of its profit out of the device, not the content stream, but I wonder if that will last. The more powerful Apple gets, the more disenchanted the hard-core tech fans become. Meanwhile, they’re getting stronger and stronger competition from devices like the Droid, which may push their margins down the way they pummeled the margins on the Kindle.
If Apple needs to pull more revenue out of its content stream, it will be interesting to watch. They haven’t positioned themselves as the low-cost or the high-performance provider in that space; everyone I’ve talked to with an iPad reads their books on the Kindle reader, not iBooks.