Stocks and Shares - Amazon Making Lots of Cash on its Kindle Ebook Readers
In these recessionary times it is rather unusual to report on something that people can't get enough of, despite it's costing $359, but Amazon's Kindle Ebook Reader is one such product.
Since it was endorsed by Oprah Winfrey as her "favorite gadget" sales have gone through the roof. So much so that there is now a thriving market in second-hand and refurbished Kindles and people are making money by 'flipping' them see - Ebook Reader, if they can get hold of them. Could this be the start of a new Tulip mania? Will Kindles soon be selling for the price of a medium-sized house in Amsterdam? Probably not, but it would be an interesting bubble to watch if it were to happen.
What is a Kindle Ebook Reader?
Basically it's an electronic device onto which you download books so that you can read them on the move. The unique selling feature is that the screen looks like paper and of course you can have hundreds of books, magazines, newspapers etc... on your Kindle at any one time. For full review see - Amazon Kindle Ebook Reader
The interest from an investment point of view (apart from the re-sale value of the Kindles themselves) is that it is estimated that Amazon could achieve an additional $1 billion revenue next year from Kindle sales and the sales of associated ebooks etc... This would represent 4% of Amazon's revenue and if sales continue to gather pace, given that Amazon are out of stock and given Oprah's endorsement, then Amazon's bottom line should also improve . There is also the money that Amazon makes each time somebody downloads a book or newspaper. So Kindle sales create a captive audience, who will be keen to make use of their 'investment' as the e-products sold are cheaper than the actual physical products.
There will also be a new and improved version of the Kindle next year. 
If you are interested in flipping a Kindle, then if you haven't already got one you will find it difficult. They are already selling apparently on that famous rip-off auction site or Craig's list for $1500 , but if you can find one for under $1500 then you may be in with a chance of flipping it for a quick profit.
Amazon badly understimated 'Oprah power' and have been caught with not enough stock and you now need to order your Kindles in advance, a bit like you used to do for your Ferraris. This however can only be good for the under the counter Kindle market and for future Kindle commodity prices.
Amazon launched its Kindle Ebook Reader back in November 2007 (they sold out of that one too).
Forrester Research Inc., says they have sold 400,000 Kindles, others put the figures higher at 450,000.
People can also publish their own blog via the Kindle, at a cost of around $1 a month , thus creating more interest for the device
Competitors are the Sony Ereader and the latest Ebook Reader - the eSlick by Foxit - which you can pick up for $250 but which does not have as many features as the Amazon Kindle.
Amazon's 8 Year Chart (AMZN)
A good time to invest in Amazon?
What was Tulip Mania ? In the 17th Century here is the price paid for a tulip bulb - not the most expensive
An author of the day, a certain Mr Hunting, preserved a list of the items delivered for a single root of the rare species of tulip know as 'Viceroy' and the values:-
................................................. florins.
Two lasts of wheat .................. 448
Four lasts of rye ...................... 558
Four fat oxen ........................... 480
Eight fat swine ......................... 240
Twelve fat sheep ..................... 120
Two hogsheads of wine ............. 70
Four tuns of beer ...................... 32
Two tuns of butter ................... 192
One thousand lbs. of cheese........ 120
A complete bed ........................ 100
A suit of clothes ......................... 80
A silver drinking-cup ................. 60
TOTAL ...................................... 2500
Those were the days ! One unfortunate ignorant sailor picked up a tulip bulb and ate it ! The owner was not pleased.
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