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Analysts Grow Impatient at Lack of Kindle Stats

Amazon has been shouting about the success of the Kindle for a while now but the company really stepped things up over the holiday period. 'Top selling item' this and 'most gifted item' that, Amazon said. All well and good you said, but how many have you actually sold? What does "most gifted item" mean in terms of sales?

Well, it seems we're not the only ones wondering where Amazon's sales figures have gone to. Reuters reports that investors are growing impatient with all the fanfare and no evidence to substantiate the online retailer's claims.

Amazon shares hit an all time high in December. However, as more ereaders enter the market and challenge the Kindle, there's a risk that the device will be outdone by a newer model; and investors, who have no clue as to what kind of sales figures the device is seeing, could panic.

"As long as Amazon continues to have the right margins and the right profit numbers at the end of every quarter, they can probably get away with that," James McQuivey, an analyst at Forrester Research told Reuters. But, if the Kindle starts to drop, the knock-on effect could be substantial.

"You may suffer a 10 to 15 to 20 percent correction because the uncertainty factor would be so high," McQuivey said. "It ensures that if there is bad news, people imagine the worst."

Analysts at Bank of America Merrill Lynch are of the same mind. In a note, the analysts said the recent statements about the Kindle were frustrating and more geared toward generating press than providing investors and consumers with the relevant information.

Read the full story here.

  • sliem
    They are just saying it because it's their product. Ie: they lie.
  • lightsaber
    I'll stick with a good ole physical paper back book thank you.
  • culgor
    I love reading on my Kindle. I can carry all of my books with me. It is lighter than the 1,000+ page bricks coming out. So far the only thing lacking is the content. Not all new books are being released on the Kindle, which is a shame.
  • plinkoblinko
    Not surprised, Until I can order all my textbooks (Cheap!) and use built in highlighters and notes...That is when I'll invest in a Kindle.
  • tenor77
    lightsaberI'll stick with a good ole physical paper back book thank you.
    Agreed. To be fair, I haven't tried it so I can't knock it, but it just doesn't sound appealing to me.
  • This makes one wonder if Amazon may be pulling some kind of Ponza scheme to artificially inflate the sales and popularity numbers to bring in more investment dollars.

    Personally, I would never shell out almost $500 for the Kindle DX, then roughly another $200 +/- for a two year service contract which basically covers battery replacement.

    As for the Kindle itself (not the DX), it's way too small and they still want too much for both the product and the service contract.

    Plus if you actually take the time to read through the reviews, you'll find that Amazon does not keep their word as to "once you purchase an eBook, it's yours forever" and there are other problems that do arise. You just need to take the time to read through the reviews.

    Although if it wasn't for the pricing and the fact that the battery can't be changed by the user, the Kindle DX would be a great present for my wife.
  • Ho0d1um
    lightsaberI'll stick with a good ole physical paper back book thank you.They also cost the same and you don't have to shell out $300-500 on a little gadget.
  • konjiki7
    Paper back works for me. I still rock a P.A.D no need to have latest model or upgrade because it only comes in one flavor!
  • ethanolson
    If they release stats, then it'll be easy to infer their volume with other products and that may show a difference in overall company value versus what shareholders expected.
  • Proprietary files format;
    you do not actually own what you bought - you're just renting it for the full book's price;
    Amazon can (and DOES!) delete any book from YOUR Kindle without even asking you first;

    What else great features of Kindle did I miss?