Becoming Who You Want To Be

Last week Amazon reported excellent third quarter figures. Net income was $ 199 million – 70% up compared to the third quarter of 2008. Both revenues and profits exceeded analyst’s predictions and a very strong fourth quarter is now on the cards. Share price rose by 27% amid strong expectation that Amazon would become the dominant online retail business in the post-recession economy.

A major factor in Amazon’s success has surely been the Amazon Kindle e-book reader. The Kindle was originally launched in November of 2007. Now in its second generation, it has gained a 60% share of the US e-book reader market. After a long wait, Amazon has commenced shipping the Kindle 2 reader to over 100 different countries worldwide. A second price drop since the launch accompanied the announcement of international shipping.

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.

Sony, Microsoft and Apple are all in various stages of development with their new readers. Although the e-book market is relatively new it is changing and growing at incredible speed. Considering the dominance of Amazon to date, and the fact that the Kindle is their top selling product, it seems improbable that Amazon will sit on its hands as other manufacturers overtake them (just as Amazon did to Sony two years ago).

Amazon is, of course, far from being a one trick pony. Strong growth in Amazon prime memberships was seen – which offers enhanced delivery options for a one off yearly payment. Growth was particularly strong in international markets.

A company spokesman predicted that business analysts could expect Amazon to expand both the categories of goods on offer along with geographical expansion over 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.