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Bezos on Kindle Business Model, Profitability, and Competition

May 29, 2009

in Kindle,Opinion

Recently Jeff Bezos have made some comments on kindle sales, old and new kindles published on SeatlePI:

On when Amazon will release data on kindle sales:

“I’m not sure we ever will reveal all the numbers,” Bezos said. “There often can be a competitive advantage in keeping the numbers close. You may just have to remain curious on that point, and I certainly understand the curiosity, especially because I look at the numbers so avidly every morning.”

The figure that Amazon will share is that of the 290,000 titles available on the kindle, electronic reader sales represent 35 percent of physical book sales.

“I beg your indulgence on the question of how many Kindles have been sold.”

On how to upgrade your old kindle:

Amazon CEO Jeff Bezos says his company does not talk about competitors, as a policy. But one can read all about them on the kindle.

“Give your old device to somebody and buy the new device immediately,” Bezos said. “You can always sell a used device as a third-party seller on Amazon. You can get a significant amount of money back by doing that.”

On why the color kindle won’t be available for multiple years:

“I’ve seen the color displays in the laboratory and I can assure you, they’re not ready for prime time,” he said.

On new kindle versions:

“We release products when they’re ready, which we know is a little quirky,” Bezos said, declining to give more details.

He acknowledged that the electronic book reader market will have “multiple winners.”

Similar kind of comments he made with the Seattle Times:

……is the kindle making any money yet?

Bezos’ response seemed to be “no.”

Amazon’s digital-media business is in “investment mode,” he said, noting that the kindle took more than three years to develop.

“If something is successful, it seems to take five to seven years or more before it’s a positive contributor to the economics,” he said. …………………The company might not ever release sales figures for the kindle. “There’s a competitive advantage in keeping the numbers close. You may just have to remain curious,” Bezos said in response to an audience member’s question.

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