Sales of Kindle devices took off last year, according to our estimates. The introduction of the Kindle Fire did not disrupt sales of the regular, cheaper e-readers as many predicted. In fact, consensus is that they outsold the tablets, their appeal amplified by rapidly falling prices.
As we discuss in a recent note, the Kindle ecosystem is performing exceptionally well right now. The devices themselves are just the bait for Amazon to draw consumers into its expansive media consumption and distribution ecosystem. As we argue, the Kindle’s content ecosystem has a strong network effect: The more devices in consumers hands, the stronger the platform, the more attractive the device, and so on and so forth.
Photo: news reports, company releases, BI Intelligence estimates
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