Amazon, using their Kindle reader family as a vehicle, has been a major player in the development of both the e-book reader and e-book market. The first Kindle was released in November of 2007. In February of 2009, the updated and enhanced Kindle 2.0 hit the market, quickly followed by the large format Kindle DX 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.
Companies such as Sony, Barnes and Noble, Bookeen, Plastic Logic and iRex did their best to get their share of the new and fast developing e-book market, but the Kindle’s dominance looked to be pretty much unassailable. It wasn’t until the launch of the Apple iPad that the Kindle had any credible competition – even although the two devices were very different and would appeal, you would imagine, to different audiences.
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 had to back down from this – but it’s not necessarily a bad thing for them, or Barnes and Noble for that matter. Amazon has always appeared to be more interested in selling books – and e-books – rather than hardware. That’s the only possible explanation for the fact that they have made it possible to read Kindle books on so many different devices. At the moment, you can read Kindle books on the PC, the Mac, your Blackberry, the iPod Touch, the iPad and any mobile device running Android. So companies like Barnes and Noble, Amazon and now Apple, who have a stake in the future sale of e-books over the life of a reader, can afford to sell the hardware cheaper and profit over the life of the device.
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.
Discover the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you customise and enhance your reader.