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On this blog we will track down the latest Amazon Kindle news. We will keep you up to date with whats hot in the bestsellers section, including books, ebooks and blogs... and we will also bring you great Kindle3 tips and tricks along with reviews for the latest KindleDX accessories.

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September 2016
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Analyst Says Short-Term Kindle Demand Falling, DOJ Settlements May Upset Those Predictions

According to some recent research by Pacific Crest analyst Chad Bartley, the demand for both Kindle E Ink eReaders and Kindle Fire tablets has fallen noticeably from Q4 2011 to Q1 2012.  There is some fairly compelling argument to be made, however, that changing any predictions based on this would be at best premature.  Regardless of the way things stood a month ago, the Kindle world is about to be turned upside down and interest can’t help but rise as a result.

This is not meant to be a criticism of Bartley’s analysis.  Based on the information at hand when he was writing, his report was accurate.  A combination of consumer polls about intended purchasing and inside information about Amazon’s supply chains show a marked decline in interest in Kindles from month to month.  He attributes this to a maturation of the eReader market, an increasingly well covered customer base, and consumer willingness to read on a variety of things besides eReaders.  All good points.

Since we now know that three of the Big 6 publishers have already settled with the US Department of Justice to avoid an ongoing legal defense of their price fixing arrangement, that is all more or less irrelevant.  The beginning of the end of the Agency Model will mean a return to lower prices on popular eBooks and a far more active marketing campaign on Amazon’s part.  There has literally never been a better time to buy a Kindle.

Regardless of where you stand on the state of publishing, it is undeniable that things are about to change in such a way as to allow for lower pricing.  As most of the problem with adopting eReading recently has been the fact that eBooks are commonly priced higher than their paper counterparts, changing the balance of things will open up new markets for the Kindle.  Customers who were previously on the fence about a purchase will now have much more appealing opportunities in front of them and Kindle ownership will be that much simpler to justify as paying for itself in savings over a short period of time for any active reader.

Will there be ongoing and constant increase in interest in the Kindle?  It is probable that sales will plateau at some point.  It is also probable that Amazon’s luck from the DOJ has pushed that point off into the future a bit. Estimates may be down for the moment, but they will be revised soon enough.  If anybody knows how to exploit a major opportunity like this, it is Amazon.

This is a great time to have a Kindle.  If you don’t have one of your own yet, it might be useful to check out the Kindle Keyboard.  Still in many ways the best iteration of the product line to date, it will serve you well in any reading situation. Might as well take advantage of the situation, since the customer benefits more than anybody in all of this.

New Kindle Fire 7” & 9” Models Reportedly On The Way

Remember when we were predicting a Kindle Fire launch with multiple tablet sizes to choose from?  Well, better late than never.  Chad Bartley, a Senior Research Analyst over at Pacific Crest, has predicted that we will be seeing a 9” Kindle Fire before the end of 2012, possibly as early as this summer.  Along with this, an update to the already incredibly popular 7” model is expected.  While previous estimates for upcoming Kindle tablet sales had been falling in light of a rumored iPad 3 launch that may include a 7” iPad meant to compete directly with Amazon, the same analyst has upgraded his estimates to account for anticipated demand.

We first heard rumors of an 8.9” Kindle tablet on the way in 2012 via a Digitimes report back in November that indicated a May launch was planned.  While Digitimes is often less than perfectly reliable, they have managed to come up with some good information before on many occasions.  In this case, they also reported that the choice of screen size was meant to simultaneously take advantage of pushes by LG and Samsung to promote the smaller screen size and to avoid competing directly with more established tablets like Apple’s iPad and Samsung’s Galaxy Tab.

What this will mean to Kindle fans is hard to say at this stage.  The immediate concern for owners of the original Kindle Fire will be continuing support.  As many owners of the 1st Generation Kindle can attest, Amazon has a tendency to quickly move forward without worrying about ongoing backward compatibility for their newest efforts.  At the same time, however, there has obviously been an increased awareness of the importance of consistent branding.  While the second generation of Kindle eReader was a fairly noticeable break from the original, subsequent offerings have all remained fairly obviously related.  Add to that the fact that the Kindle Fire is already capable of running more recent versions of Android (as demonstrated by recent videos involving ICS installs) which would be the most obvious thing for the company to change on the software side of things, and there is reason to believe that there will be at least a few years of supported life for the current Kindle Fire.

More interesting will be seeing how they handle the upgrade.  Will the new model or models bow to customer demand for a camera, for example?  There have also been indications for some time that NVidea is interested in getting involved with Amazon’s tablet efforts, which could mean a jump into the Tegra 2 or even Tegra 3 for the larger new Kindle Fire.  Either of these would make sense given the emphasis on video and app use that Amazon has made apparent.

Unlike previous rumors, this one is adding up from a number of different sources and seems to be confirmed by the most recent Kindle ad uploaded to Youtube.  In this, the iPad’s flaws as a reading device are still emphasized in a familiar message, but they also make a dig at the high price tag relative to the $200 Kindle Fire and imply that there is little the iPad can do that the Kindle line can’t accomplish collectively for less money.  To many, this seems to be setting the stage for more direct Kindle vs iPad conflict.

http://www.youtube.com/watch?feature=player_profilepage&v=sulfQHdvyEs

Kindle “Still Too Expensive for Mass Acceptance”

Amazon Kindle product description and specificationThat’s what analyst Steve Weinstein of Portland’s Pacific Crest told the San Francisco Chronicle, adding that Amazon has sold around 40,000 units so far this year and could sell between 700,000 – 800,000 by the end of 2008 hitting $2.5 billion in sales by 2012.

Considering that Apple sold 376,000 iPod units in its first year, the numbers look promising, that’s considering you believe Mr Weinstein’s numbers – we think his numbers are highly inflated and Mark Mahaney’s figures are more realistic. But that’s not the interesting part of Steve Weinstein’s analysis, he goes on to say that Kindle wont have the same impact on the industry as the iPod had on the music industry, – I think we can all agree on that – one reason being that that price of the Kindle, currently at $359, is too expensive for mass acceptance. Is $359 too expensive? what we have got to remember is that Kindle is the first generation device, and prices will inevitably drop.

Tim McCall, VP of sales at Penguin Group USA said “We see it as an incremental change” suggesting that the Kindle is a catalyst in an overall move towards an e-book distribution model for the industry. Tim McCall added “It’s certainly a device that has energized the digitization of books”.

Is the Kindle too expensive for mass acceptance? what do you think: