Archive: Business & Technology

When Borders closed in the mall last year it wasn't just an isolated fluke.  It was part of a dramatic shift in the book business.  Amazon is the number one online seller in the world, and the sucess of their Kindle line went ballistic with the introduction of the Kindle Fire just in time for the Christmas Season.  The Fire is a combination of a Kindle and an iPad, prices at $199.  While Amazon has branched out to sell just abouit any imaginable product, they are best known for revolutionizing the way books are sold and consumed (see graphic below).

Amazon has been criticized for selling Kindles at a loss, but that makes them crazy like a razor company.  Reading on an electronic pad device is easy and fun, and there is some data that suggests people read more books on the devices than they do reading physical books.  They are selling the blades (books) and selling the razors (Kindles) at a loss.  You only need one razor.  You need lots of blades.

The International Digital Publishing Forum reports that eBook sales rose from $1,556,499 at the beginning of 2002 to $40,700,000 by the end of 2010.  One prediction suggests that by 2025 75% of all book sales will be electronic.  Frugaldad.com has compiled some statistics about what Amazon.com looks like today (see below).  With rumors of a $300 model of an upcoming iPad, the runaway success of the current iPads, and the more affordable Kindles and Nooks, the future of books looks like it could reach that 75% prediction soon.

Source: Frugaldad.com

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