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Apple iPad boosting Amazon's Kindle business

Posted on Saturday, October 16 2010 @ 01:37:40 CEST by

US investment firm Cowen and Co. believes Amazon's Kindle business is benefiting from Apple's iPad as the increased adoption of tablets will boost eBook sales. The Kindle is just a means to an end to sell more eBooks, as the investment house estimates that Amazon is subsidizing Kindle prices out of the money it makes from selling digital books.
Says Cowen: "The results support our view that the iPad is not having a negative impact on Kindle device or e-book sales. In fact, we think the adoption of tablets will boost Kindle e-book sales, especially since 20 per cent of current Kindle e-book buyers do not own a Kindle device."

It reckons Amazon will account for 76 per cent of e-book sales to Apple's five per cent, though in five years' time those shares will have shifted to 51 per cent and 16 per cent, respectively.
Source The Register



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