Kindle has bookstore edge over iPad, but won't last long
updated 11:50 am EDT, Sat June 19, 2010
Analyst sees Amazon Kindle's edge lost to Apple
Amazon has the edge in the e-book market right now with the Kindle but will invariably lose ground to Apple over time, Citi analyst Mark Mahaney said in a research note on Friday. The Kindle store has both more selection and lower overall price than the iBookstore for the iPad, but Mahaney didn't think this would last as Apple refines its store and increases iPad sales. He didn't predict when this would happen but saw it as almost inevitable.
"It's hard to see why the gap won't narrow over time," the analyst said.
The gap in question is particularly close when it comes to the NYT bestseller lists, which often dictate the successes of digital titles. Only half of the newspaper's bestseller list is available on both platforms, but even two months after the iBookstore's launch Apple has 63 percent of the list where the more established Kindle has 88 percent. About 80 percent of the list is the same price, and the average price of a Kindle book is only about one dollar less, $11.23 versus Apple's $12.31. Those that are less expensive on the Kindle are often only about 11 percent cheaper.
Although not mentioned by Mahaney, Amazon also faces concern over the exposure of the Kindle reader and store versus Apple's devices. The online retailer has never been willing to reveal how many Kindles have been sold since they went on sale at the end of 2007, but unofficial estimates put this at somewhere over three million. Apple has already reached two million iPads in two months and has the potential to outsell the Kindle's lifetime sales before the end of the year. Only a fraction of those are likely to engage in significant e-book reading but may give publishers more incentive to offer books on Apple's store.
The situation may also be exacerbated by the imminent arrival of the iBooks app and store on iPhones and iPod touch players next week, when iOS launches. Amazon already has a Kindle app for both the iPad and iPhone but doesn't have the advantage of controlling either platform to promote their stores. iPad owners are given a one-time promotion of the iBooks app when they visit the App Store on the tablet.
Fresh-Faced Recruit
Joined: Oct 2004
Silly opinions
True, Amazon doesn't control the App store.
At the same time, Apple doesn't control Amazon.
The analyst forgets that the Kindles mostly went to dedicated book readers, and Amazon is primarily known as being a book store.
The fact that Apple will someday sell more iPads than Amazon Kindles, is part of the equation. However, the number of people who bought iPads to be something other than a dedicated book reader, has to be considered as well. It comes down to who is actually selling more books.
The Kindle store is on the iPad. iBookstore is never on a Kindle.
I'd say Apple has a lot going for it....no brainer that they are a competitor, and could do well in books. However, Apple has a lot to learn about being a good book store.
One thing Apple hasn't clued in on yet, is book lovers often like to buy the paper version of the book too.