updated 10:20 pm EST, Thu January 28, 2010
Net sales increased 28% for the year
Amazon on Thursday released its fourth-quarter earnings report, indicating a net income increase of 75 percent to reach $9.5 billion. CEO Jeff Bezos claims that "millions of people now own Kindles," although the company has yet to release specific distribution numbers for the e-book reader.
The US Kindle Store now offers over 410,000 e-books, covering 100 of 112 New York Times bestsellers. Customers can also choose from over 8,000 blogs and more than 130 domestic and international newspapers.
"When we have both editions, we sell 6 Kindle books for every 10 physical books," said Bezos. "This is year-to-date and includes only paid books -- free Kindle books would make the number even higher. It's been an exciting 27 months."
Amazon has reported a 28 percent increase in net sales for the full year of 2009, reaching approximately $24.5 billion. Net income rose to $902 million for the year, a 40 percent increase compared to 2008 profits.
The company recently changed its Kindle payouts to compete with Apple, now giving 70 percent of the purchase price back to the publishers. Apple has maintained its 30 percent cut, however publishers are not restricted to Amazon's $10 price cap for e-books. The iPad maker recommends that publishers charge $14 or $15 for hardcover bestsellers.