retail news in context, analysis with attitude

Bloomberg reports that analysts are predicting that Amazon.com is likely to sell more than eight million Kindle e-book readers this holiday season - far more than the 2.4 million sold in 2009 and five million that analysts expected to be sold in all of 2010.

According to the story, “Chief Executive Officer Jeff Bezos is using the Kindle, unveiled in 2007, to expand into hardware and fuel digital book demand. The projections show Amazon is adding share in the e- reader market, where it vies with Sony Corp. and Barnes & Noble Inc., faster than predicted by analysts at Citigroup Inc. and at least five other securities or research firms.”

Amazon has grown its Kindle sales in part of expanding the number of versions that it sells - there are three different Kindles, ranging in price from $139 to $379, depending on memory and capabilities - thereby expanding the attractiveness of the product to a broader demographic spectrum.

It should be noted that all these sales figures are based on speculation and anonymous sources, since Amazon does not disclose specific sales figures for the Kindle.
KC's View: