Amazon announced on Dec. 27 that the company’s third-generation Kindle is now the top-selling product it has ever offered. With that news, some in the tech industry were undoubtedly taken aback, especially considering Apple, the company that typically wins out in battles over consumer electronics, hasn’t been able to outright dominate the Kindle.
Of course, that hasn’t stopped the naysayers from coming out and saying that the Kindle won’t be able to repeat its success in 2011. It’s a mantra that the market has been hearing for quite some time. And in each case, those who deny Amazon’s chances of performing well are proven wrong. Going into next year, all the naysayers will likely experience the same result.
Read on to find out why 2011 will be an even better year for Amazon and its Kindle.
1. Sales are up
Sales are usually the best indicator of whether or not a device will have a solid future. At least when it comes to the Kindle, sales remain remarkably strong. Considering the third-generation e-reader is now the top-selling product on Amazon.com, there’s no reason to suggest that won’t continue going into 2011. The Kindle has struck a chord with consumers, and that won’t change in a matter of months.
2. E-Readers are hot
Even though they’re distracted by so many other options, consumers around the world still love to read. The only difference is more people are doing it with e-readers these days than they used to. That might be a problem for book publishers, but it’s good news for Amazon. As the market continues to move towards e-readers—Gartner expects over 68 percent growth in 2011 along—the Kindle will be well-positioned for continued growth in 2011.
3. The iPad is helping
Although the iPad is a competitor to the Kindle, it’s ironically helping Amazon sell more e-readers. When Apple first announced its tablet and showed off iBooks, it made the mainstream pay more attention to the e-reader market. Although many of those folks opted for the iPad, there were still many others that saw value in e-books, but opted for Amazon’s option simply because it was more affordable (and has received high marks from reviewers).
4. Remember the mobile app
Amazon is offering more than just an e-reader to consumers. In fact, owners of smartphones and tablets can download Amazon’s mobile app allowing them to choose from and read the online retailer’s collection of books on their respective devices. That doesn’t necessarily help Kindle sales, but if nothing else, it keeps Amazon relevant in the e-book market. That could actually help drive stronger sales of future Kindle models.
5. The marketing works
Going into 2011, Amazon seems to have found its stride in marketing the Kindle. Not only does the company use its Web site effectively to drive people to the purchasing page, but it also uses more traditional marketing methods, like ads and commercials, to drive the point home that its Kindle is a worthwhile device. So far, those efforts seem to have caught on and going into 2011 they will only improve Amazon’s chances of selling more Kindle units.
6. The momentum is growing
In the technology space, success depends on momentum. Products need to have the ability to build upon the success they’ve enjoyed before. As Amazon’s recent sales announcements show, its third-generation e-reader is building upon the success of previous models. Going into 2011, Amazon will continue to capitalize on this sustained momentum to drive even better sales with more capable models.
7. Amazon is prepping better models
Speaking of those more capable models, they could be integral to the future success of Amazon’s e-reader. Right now, when compared to the iPad, the Kindle might not seem like the best option. It lacks color, a worthwhile browsing experience and all the bells and whistles that Apple’s option has. But Amazon is undoubtedly working on a more-capable model. When that arrives, Apple might just have an even more dangerous competitor to deal with.
8. The price is right
Although Amazon’s Kindle is an e-reader at heart, the device is still competing as a tablet. It’s fighting against the iPad, Samsung’s Galaxy Tab, and perhaps most importantly, all the devices that will be made available next year. When features are compared, the current Kindle can’t quite match up. But it has a significant benefit in its corner: its price. The Kindle can be purchased for as little as $139. The iPad, on the other hand, sells for $499. That’s a major difference, especially for people who really just want a basic e-reader. This factor should help buoy Kindle sales next year as more tablets come out for around the same price as the iPad.
9. Barnes and Noble isn’t a factor
Barnes and Noble currently sells the Nook, another e-reader that attempts to compete against the Kindle and iPad. But for Amazon, it’s clear now that the Nook isn’t much of a competitor. The device is fine for some consumers, but it can’t match what the Kindle offers. Considering Amazon’s option is still the most recognizable e-reader on the market, it doesn’t seem that the Nook will be able to top the Kindle in 2011.
10. It has the hype
As Apple has proven time and again with its own slate of successful products, hype is extremely important in today’s marketplace. Although the Kindle doesn’t enjoy the same level of hype that the iPad does, it actually has won greater buyer recognition than any other e-reader on the market. Consumers are at least considering the Kindle when they know they want to start reading e-books. In a market where Apple continues to compete, just having consumers think twice is enough of a victory.
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