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Author Topic: Amazon Sold Half a Million Kindles in 2008  (Read 1312 times)
durphy
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« on: February 03, 2009, 11:14:48 AM »

Amazon Sold Half a Million Kindles in 2008 http://tinyurl.com/c495w6
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« Reply #1 on: February 03, 2009, 11:31:33 AM »

That's an estimate according to a banking analyst. It's not factual, verifiable information. I'd take it with many grains of salt.  Smiley

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« Reply #2 on: February 03, 2009, 12:31:36 PM »

I personally think it would be underestimated -  Grin
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« Reply #3 on: February 03, 2009, 10:10:38 PM »

I believe if there were 500,000 out there I would have seen at least one in the wild with all the traveling I do.

I don't believe this for a second.
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« Reply #4 on: February 03, 2009, 10:26:14 PM »

I haven't seen a single kindle in the wild either. yet alone a Sony outside the store display. Amazon hasn't released any info on kindle sales as far as I heard.
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« Reply #5 on: February 04, 2009, 08:02:49 AM »

We have CNBC on all day at work (b/c HR is trying to cure a rampant insomnia problem), and if I recall correctly, Amazon rarely releases sales figures of any kind.

Right after Black Friday, Amazon issued a statement along the lines of "best black Friday ever", but analysts were quick to point out there's really no way to tell.  amazon didn't release prior-year data, nor did they release data from this year.  So I think people who track that sort of thing tend to think of amazon data as "unquantifiable".

I have also not seen a kindle besides my own.  And my co-worker, who travels four out of five days every week, has only seen one besides mine.  But I've never seen a sony either.  By comparison, does anyone know any sort of sales figures for the Sony ereader?
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« Reply #6 on: February 04, 2009, 08:25:17 AM »

I know of three people with the Sony e-reader. I have yet to see a Kindle in the wild.

The 500,000 figure was developed based on Sprints reports on how much whispernet usage there was. It is not a number that I really trust, although the method of getting it was kind of interesting.
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« Reply #7 on: February 04, 2009, 08:36:23 AM »

That would be an interesting thing to see, professor.

Got a link?  That sort of derivative number sounds like something Charlie would do on Numb3ers.
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« Reply #8 on: February 04, 2009, 08:42:19 AM »

http://mediamemo.allthingsd.com/20090203/citi-says-amazon-sold-500000-kindles-last-year-12-billion-business-next-year/?reflink=ATD_yahoo_ticker

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Watching Mahaney get to his numbers makes for interesting reading, if you enjoy reading analyst reports: He derives the 500,000 number via a filing by Amazon partner Sprint (S), which handles the wireless service for the e-books. And he gets to the $1.2 billion number by assuming that Kindle adoption will be similar to that of Apple’s (AAPL) music player several years ago, and that Kindle owners will buy a digital book each month. (Click chart to enlarge)
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Gertie Kindle 'a/k/a Margaret Lake'
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« Reply #9 on: February 04, 2009, 09:46:24 AM »


Kindle owners will buy a digital book each month?  Apparently, he's never visited kindleboards.

Even WN usage is pretty iffy.  Some of you have purchased books pre-delivery and download them all at once.  I'll wait until I have two or three in queue before downloading.  Then I transfer books back and forth between Little Gertie and Amazon.  There is no way that can be an accurate estimate.   

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« Reply #10 on: February 04, 2009, 10:25:39 AM »

Agreed, I don't think the estimation is accurate but I did find the methodology interesting. It was a different way of trying to figure out what they number of Kindles sold is. It is a flawed measure but it is interesting. (shrugs)
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« Reply #11 on: February 04, 2009, 10:33:45 AM »

It is interesting.  Of course, according to the graph (if I'm reading it correctly), the revenue for FY2008 on half a million kindles was $87,500?  I had to have read that wrong.  That comes out to a profit of seventeen cents per unit.

And, some people have better whispernet coverage than others, so aren't there a segment of users who mainly get their kindle books through USB download?

It's an interesting set of assumptions.  I wonder if anyone doing this research actually owns a kindle, or a sony.  It just seems to me like a one book/month/reader download rate is a little on the low side.  I mean, generally books are priced the same as a full album on iTunes.  So I wonder if the one download/month/user was also used for the ipod (b/c they seem to be making some comparisons between the ipod and the kindle here, which is somewhat on the order of an apples to apples comparison.)
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« Reply #12 on: February 04, 2009, 03:23:25 PM »

It is interesting.  Of course, according to the graph (if I'm reading it correctly), the revenue for FY2008 on half a million kindles was $87,500?  I had to have read that wrong.  That comes out to a profit of seventeen cents per unit.

You missed the first line of the graph, where it says (in thousands), so that's actually $87.5M.  Then you also have to note that they amortize that revenue over two years (listed in the line above), so you double it to $177M (the line above the two-year note).  That comes out to $350 per unit.
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« Reply #13 on: February 04, 2009, 03:29:17 PM »

I think you guys are missing the real news here.

Apparently Amazon was able to keep the Kindle in stock long enough to sell 500,000. Now that's amazing!
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Anju No. 469
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« Reply #14 on: February 04, 2009, 03:43:18 PM »

Actually I have seen 3 kindles in the wild - in Mexico  Shocked
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Dona
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