How Amazon Can Dominate The eBook Market

Future Looking Good For Kindle

According to NASDAQ.com, the future's looking good for Amazon's Kindle ebook business:

Amazon's ( AMZN ) shares rose 4% on February 13 after an analyst note fueled further optimism about the company's Kindle e-book business. Amazon's Chief Executive Jeff Bezos noted in the fourth quarter 2012 earnings results that e-books are a multi-billion category for Amazon and grew at approximately 70% y-o-y in 2012. In contrast, the physical book sales registered their lowest December growth in 17 years at about 5%. Morgan Stanley's Scott Devitt estimates that the e-book market is a lot bigger than previously thought and that owners of Kindle e-readers and tablets are reading more e-books. He estimates worldwide e-book unit sales to have reached 859 million in 2012, up considerably from a previous estimate of 567 million. Leading research firm Forrester Research estimates that the U.S. e-book market will reach $13.6 billion by 2017.

We believe that Amazon, with its Kindle e-reader, low prices for e-books and self published books, will be the biggest gainer from the expected growth in the e-book market which will further solidify its position. Here, we take a look at how the company can further expand its dominant position in this market.