Thursday, February 4, 2010

Kindle vs iPad eBook Wars

"Citi analyst Mark Mahaney estimates that Amazon will sell 3.5 million Kindles this year and 100 million eBooks.  He estimates total Kindle hardware and eBook sales (assuming the $9,99 price) to come to $1.9 billion, or 5 percent of Amazon’s estimated total revenue for 2010.  If Amazon can’t hold the line on the $9.99 price, it will be harder to sell 100 million eBooks and there might also be less demand for Kindles. (The ability to buy new books at a steep discount is one of the Kindle’s main appeals). Every million Kindles Amazon doesn’t sell will result in a 1 percent reduction in Amazon’s total estimated revenue for 2010.  (Barclays analyst Douglas Anmuth estimates only 3 million Kindle sales this year). Will the iPad dampen sales of the Kindle and its eBooks, and by how much?"