Amazon claims to own 70-80 per cent of the eBooks market
By Wilson • Aug 4th, 2010 • Category: Industry News, eBook Readers
- Photo: goXunuReviews / Flickr
In a fascinating interview with the Cnet Crave blog, Ian Freed, a vice president over at Amazon, claimed Amazon held 70-80 per cent of the eBooks market, as well as revealing a host of other tidbits on the Kindle business.
The market share truths and lies
The very first thing Ian Freed revealed is Amazon’s ‘double triple’. The first of which is ‘the number of e-books sold in the first quarter of 2009 versus the first quarter of 2010’ which saw the latter period’s volume triple over the former. Amazing. He added that ‘the other is after we dropped the price of the Kindle to $189, we saw a tripling of the growth rate year over year [of the device itself].’ Remarkable what a price drop does for an eBooks reader, or any product, huh?
Freed also spoke about market share, wherein he said Amazon owned 70-80 per cent of the market, even though Barnes & Noble claimed to own 20 per cent and Apple 20 per cent. Coyly Freed offers that ‘something doesn’t add up’ and that he encourages the interviewer ‘to do some research’ on the matter. We’ve done our own research in the past, and can attest to at least one of those Amazon competitors duking the stats.
User distribution
Ian Freed also went into details about what percentage of Kindle store users are actually Amazon Kindle owners. From Amazon’s findings, ‘80 percent of Kindle books we sell are sold to Kindle owners’, therefore 20 per cent do not own a Kindle device. They’re purchasing Kindle books from other apps hosted on smartphones, PCs, and tablet computers. This, explains Freed, in indicative of ‘…the health of both businesses. The device business continues to grow with a device [the second-generation Kindle] that’s over a year old, and then the content is growing both with the device sales and independently with the apps’.
iPad denial, and market share fabrications
The interrogators interviewers over at Crave asked Mr. Freed the inevitable iPad question, which he then roundly dismissed. Similar to Amazon’s strategy in the past, he simply calls it a different kind of device, which Amazon loves because people purchase goods off of the digital retailer using it. He then goes on to discuss why it’s an inferior reading device to the Kindle. It’s almost as if Amazon’s strategy is to ignore it, hoping it will go away.
What we make of this
Outside the very slight iPad deflection, this interview is riveting stuff if you care about this eBook readers space.
This Crave interview is commendable for getting Freed to speak so freely about the Kindle business. Granted when you’re winning, it’s easy being open and candid, but this interview is ‘child locked in the candy store’ stuff for stats junkies and eBooks lovers both. It’s well worth a complete read to get further insights into the future of the Amazon Kindle business and the eBook readers business in general.
Tags for this article: ebook reader, amazon












