Amazon is reportedly preparing to launch an updated 7-inch Kindle Fire alongside a brand new 9-inch tablet this summer. Pacific Crest analyst Chad Bartley on Thursday raised his full-year Kindle Fire shipment forecast to 14.9 million units, up from his earlier estimate of 12.7 million. “We believe there is an upward bias, particularly from the new 7- and 9-inch models, which we expect to launch in mid-2012,” Bartley wrote in a note to clients. BGR exclusively reported last May that Amazon was working on two tablet models, the 7-inch “Coyote” that ended up launching at the Kindle Fire last November, and the quad-core 10-inch “Hollywood.” A later report would suggest that Amazon tweaked its tablet roadmap, however, pushing the release of its 10-inch model back in order to first  launch a new 8.9-inch tablet. Bartley also lowered his shipment estimates on Amazon’s E Ink Kindle eReaders from 28.6 million units to 24 million units.

With great power comes great responsibility — and a flurry of advertising campaigns that target your wares. Samsung tried to make its name a verb in a recent round of anti-Apple ads where senseless iPhone owners got “Samsunged,” and the South Korea-based vendor’s campaign culminated with a $10 million extravaganza that aired during the Super Bowl. Amazon is next up to the plate, and the company’s recent commercial takes aim at Apple’s iPad. A woman sunbathing and reading a book on her Kindle is approached by a passing iPad owner who is intrigued by the fact that she can read in the sunlight. When the man mentions the Kindle’s inability to play movies, she points to a cabana where her two children are sitting, each with a Kindle Fire tablet. As a final jab, the woman points out that her three Kindles — one $79 eReader and two $199 tablets — are still cheaper than a single iPad. Amazon’s full commercial can be viewed below.

Amazon is preparing to open a retail store in Seattle within the next few months, according to a report from Good eReader. Amazon is apparently looking to open a small boutique rather than a large shop in an effort to test the market. The store would feature the Amazon Exclusive book line and the company’s popular eReaders and tablets most prominently according to the rumor. Amazon’s headquarters is located in Seattle, which is known as being fairly tech savvy and may be the perfect location to gauge interest in such an endeavor. The company has reportedly already contracted the design through a shell company and it is expected that the first location will open ahead of the holiday season this year.

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Pew Research conducted a pre-holiday survey among people age 16 and older between November 16th and December 21st, and two additional surveys of adults age 18 and older in January. The data found that during the holiday gift giving season, sales of tablets and eBook readers nearly doubled from 10% to 19%. In the same time frame, the number of Americans owning at least one of these devices jumped from 18% to 29%. More than 33% of those living in households earning more than $75,000 a year own a tablet, with almost a third of those with college educations or higher owning the device. The eReader data revealed that more woman own the devices than men and those with both a high level of education and income showed the highest percentage of ownership.

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Amazon’s new web-based Kindle Store for the iPad reportedly helps the online retailer dodge Apple’s fee that it would otherwise pay through a native Amazon Kindle Store iOS application. Amazon’s subscription program typically charges retailers 30% of all generated revenues, which has caused retailers like Amazon to create new ways for customers to purchase goods without having to pay a fee. The Financial Times also recently pulled its application to avoid the same subscription charges, and we would not be surprised if other magazines, newspapers or retail app developers follow suit. It’s unclear if Apple will tweak its terms in an effort to hold on to subscription providers.

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Amazon announced on Thursday that the 2011 holiday season was the best ever for sales of its Kindle devices. While the online retailer didn’t specifically say just how many devices were sold by model, it did say Amazon customers purchased “millions of Kindle Fires and millions of Kindle eReaders” and more than 1 million devices per week during the month of December. The company also noted that its #1 and #4 best-selling eBooks released this year were published by independent authors through its Kindle Direct Publishing platform. “We are grateful to our customers worldwide for making this the best holiday ever for Kindle,” Amazon.com CEO Jeff Bezos said.  “And in a huge milestone for independent publishing, we’d also like to congratulate Darcie Chan, the author of ‘The Mill River Recluse,’ and Chris Culver, the author of ‘The Abbey,’ for writing two of the best-selling Kindle books of the year.” The Kindle Fire was the most popular device followed by the Kindle Touch and the Kindle. Amazon also said that gifting of Kindle eBooks jumped 175%, between Black Friday and Christmas Day, compared to last year. Amazon’s full press release follows after the break.

2011 IS THE BEST HOLIDAY EVER FOR KINDLE

Amazon customers purchased millions of Kindle Fires and millions of Kindle e-readers

#1 and #4 best-selling Kindle books released in 2011 published independently by authors using Kindle Direct Publishing

Businesses selling on Amazon have record-breaking holiday sales

SEATTLE, Dec. 29, 2011 – (NASDAQ: AMZN) – Amazon.com, Inc. today announced that 2011 was the best holiday ever for the Kindle family as customers purchased millions of Kindle Fires and millions of Kindle e-readers.  Authors also continue to benefit from the success of Kindle — the #1 and #4 best-selling Kindle books released in 2011 were both published independently by their authors using Kindle Direct Publishing (KDP).

“We are grateful to our customers worldwide for making this the best holiday ever for Kindle,” said Jeff Bezos, Amazon.com founder and CEO.  “And in a huge milestone for independent publishing, we’d also like to congratulate Darcie Chan, the author of ‘The Mill River Recluse,’ and Chris Culver, the author of ‘The Abbey,’ for writing two of the best-selling Kindle books of the year.”

More Kindle holiday facts:

·         Throughout December, customers purchased well over 1 million Kindle devices per week.

·         The new Kindle family held the top three spots on the Amazon.com best seller charts – #1: Kindle Fire, #2: Kindle Touch, #3: Kindle.

·         Kindle Fire is the #1 best-selling, most gifted, and most wished for product across the millions of items available on Amazon.com since its introduction 13 weeks ago.

·         Kindle is also the best-selling product on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.es and Amazon.it this holiday season.

·         Gifting of Kindle books was up 175 percent between this Black Friday and Christmas Day compared to the same period in 2010.

·         Christmas Day was the biggest day ever for Kindle book downloads.

·         Kindle Fire is the best-selling product on Amazon.com’s mobile website and across all of Amazon.com’s mobile applications.

Additional Kindle Direct Publishing successes include:

·         December’s #1 best-selling Kindle Direct Publishing book “Wife by Wednesday” was also the #5 overall best-selling Kindle book in December and has appeared on both the USA Today and Wall Street Journal best seller lists. Author Catherine Bybee was formerly an emergency room registered nurse, and has now left her job to focus on writing full-time.

• In 2011, KDP and CreateSpace author CJ Lyons reached #2 on the Amazon best seller list, #2 on the New York Times best seller list, and #4 on the USA Today best seller list. As a former pediatric ER doctor, CJ has lived the life she writes about in her cutting edge suspense novels, and she quit her job in medicine after 17 years to pursue her dream of becoming a full-time novelist.  Her latest work includes “Face to Face” and “Hot Water.”

Businesses Selling on Amazon

2011 was also a record-breaking holiday season for businesses that sell on Amazon.  Third-party sellers experienced record holiday growth: the number of sellers who exceeded $5,000 in sales during the holiday season increased 44 percent year-over-year.  For the year, businesses on Amazon sold hundreds of millions of units worth billions of dollars worldwide.

Scharf Industries, an office supplies and electronics provider, increased its sales on Amazon by over 500 percent this holiday season compared with last holiday season.

“We greatly value the cooperation that we have developed with Amazon,” said Andrew D. Scharf, CMO of Scharf Industries.  “They have provided us with the tools necessary to grow our business in a rapid and efficient manner.”

Ken Reiss, the owner of Reiss Innovations, LLC, started with one Amazon Webstore, selling five to 10 mouse pads for the year. Six years later he has a successful eCommerce business, selling through multiple Amazon Webstores.  Just this year alone, Reiss saw a 21 percent increase in sales compared with the holiday season last year. He has also increased the number of product listings by 50 percent over 2010 and recently extended his business to Canada.

According to Reiss, one of the most beneficial aspects of his relationship with Amazon is that “It allows me to scale in efficiency. I can devote my time to building vendor relations and growing my inventory, rather than worrying about logistical aspects, such as shipping products.” Reiss currently stores 90 percent of his inventory in Amazon’s warehouses, up from 75 percent last year.

Other seller successes include:

·         Amazon’s third-party sellers sold enough cameras for every fan at the next 10 Super Bowls to snap their own shots of the winning touchdown.

·         Amazon’s third-party sellers sold enough toys in 2011 to give a toy to every resident of Chicago.  In fact, they sold as many Lalaloopsy Dolls as there are lights on the Rockefeller Center Christmas Tree in New York City.

·         Debra Keyes, CEO of The Internet Department Store, which sells costumes for both adults and children, began utilizing Fulfillment by Amazon (FBA) – the Amazon service that stores, packs and ships orders for third-party sellers – as soon as it launched.  By January 2011, she had 1,300 products listed in FBA.  That number has now grown to 7,800 products by November 2011. During that same time period, the company’s sales increased by 34 percent.

Holiday Fun Facts

 Shipping:

• The last One-Day Prime order that was delivered in time for Christmas was placed on Dec. 22 at 11:59 p.m. PST and shipped to Ballwin, Mo. The item was “The Cook’s Herb Garden,” a book by Jeff Cox and Marie-Pierre Moine.
• The last Local Express Delivery order that was delivered in time for Christmas went to Seattle, Wash. It was a Sony Rechargeable Battery Pack that was ordered at 2:35 p.m. PST on Christmas Eve and delivered at 6:15 p.m. PST that same evening.

• Earlier this year, an Amazon customer called with an urgent request for large volume of a single book, which they needed at the airport the next day before they boarded a flight. The books were special gifts and no other retailer had them available in such short notice.  Even though the cutoff time had passed for all traditional delivery methods, Amazon was able to arrange a delivery to the customer’s hotel just prior to their departure for the airport.

Customer Purchases (Amazon.com only; holiday timeframe-specific):

·         Amazon customers purchased enough copies of Walter Isaacson’s “Steve Jobs” book to create a stack taller than Mt. Everest.

·         The cumulative weight of the Bowflex 552 Adjustable Dumbbells purchased by Amazon customers would outweigh more than 70 adult elephants.

·         If you unfolded and stacked each pair of jeans purchased by Amazon customers this holiday, the height would be 2,500 times taller than the Statue of Liberty.

·         Amazon customers purchased enough sweaters to outfit each of Santa’s reindeer during Christmas Eve deliveries for the next 14,000 years.

·         Amazon customers purchased enough copies of Just Dance 3 to give 15 copies to each person who participated in setting the world record for simultaneous dancing.

·         Amazon customers purchased enough HeatMax HotHands Handwarmers to give a pair to each resident of Iceland.

·         Amazon customers purchased enough Rory’s Story Cubes to give a cube to each person watching the New Year’s Eve ball drop live at Times Square.

Holiday Best Sellers (Amazon.com only; based on units ordered):

• Electronics: Kindle Fire; Kindle Touch; and Kindle
• Toys: Rory’s Story Cubes; Qwirkle Board Game; and Perplexus Maze Game

·         Video Games: Just Dance 3; Call of Duty: Modern Warfare 3; and Elder Scrolls V: Skyrim

• Sports & Outdoors: Zumba Fitness Total Body Transformation DVD Set; Emergency Fire Starter; and Flexible Flyer Snowball Maker
• Home & Kitchen: Cuisinart 5-in-1 Griddler; Fred M-Cups Measuring Matroyshkas; and Pure Komachi 2 Series Hollow-Ground Santoku Knife
• Books: “Steve Jobs” by Walter Isaacson; “Diary of a Wimpy Kid: Cabin Fever” by Jeff Kinney; and “11/22/63” by Stephen King
• Kindle Books: “The Hunger Games” by Suzanne Collins; “Catching Fire” by Suzanne Collins; and “The Litigators” by John Grisham
• CD: “Christmas” by Michael Bublé; “21” by Adele; and “Duets II” by Tony Bennett
• Amazon MP3: “100 Classic Christmas Songs” by Various Artists; “Mylo Xyloto” by Coldplay; and “A Very She & Him Christmas” by She & Him
• DVD: “Harry Potter and the Deathly Hallows, Part 2”; “Bridesmaids”; and “The Help”
• Amazon Instant Video: “Super 8”; “The Help”; and “Crazy, Stupid, Love”
• Watches: Timex 1440 Sports Digital Resin Strap Watch; LEGO Kids’ Star Wars Darth Vader Mini-Figure Alarm Clock; and XOXO Rhinestone Accent Gold-Tone Bracelet Watch
• Jewelry: 10k White Gold Round Diamond Stud Earrings; Sterling Silver Amethyst Butterfly Pendant; and White Peacock and Pink Freshwater Cultured Pearl Button 3 Pair Stud Earrings Set
• Clothing: Levi’s 501 Jean; Levi’s 505 Straight Fit Jean; and Levi’s 550 Relaxed Fit Jean
• Shoes: UGG Australia Classic Tall Boots; Crocs Classic Clog; and BEARPAW Emma Short Boot
• Beauty: Wonderstruck by Taylor Swift Eau de Parfum Spray; Olay Pro-X Advanced Cleansing System; and NARS Orgasm Blush
• Health & Personal Care: Philips Norelco SensoTouch Electric Shaver; Philips Norelco Shaving System; and Philips Sonicare Essence Power Toothbrush
• Tools & Home Improvement: Streamlight Nano Light Miniature Keychain LED Flashlight; Smith’s PP1 Pocket Pal Multifunction Sharpener; and Black & Decker All-In-One SureGrip Laser Level
• Automotive: Battery Tender Junior 12V Battery Charger; Wagan 12-Volt Heated Seat Cushion; and Mystic Industries Reindeer Vehicle Costume
• Baby: Baby Einstein Take Along Tunes; Vulli Sophie the Giraffe Teether; and Cloud B Twilight Turtle Constellation Night Light

·         AmazonWireless: Motorola DROID RAZR 4G Android Phone (Verizon Wireless); Samsung Galaxy S II Epic Touch 4G Android Phone (Sprint); and Samsung Galaxy S II 4G Android Phone (AT&T)

• Amazon Appstore for Android: Angry Birds (Ad-Free); TETRIS; and Pandora Internet Radio

M-Edge Accessories has filed a lawsuit against Amazon with a federal court in Maryland that accuses the online retailer of bullying it into coughing up higher commissions in exchange for better placement on Amazon’s website. M-Edge Accessories isn’t just filing a suit for extortion according to The Wall Street Journal, however — the accessory maker is also accusing Amazon of patent infringement, false advertising, creating unfair competition and hampering M-Edge’s customer relations. Amazon reportedly played some pretty dirty games with M-Edge in order to secure a larger percentage of commissions. M-Edge said it initially signed a deal with Amazon that would provide the retailer with a 15% commission on all goods sold. Amazon allegedly came back two months later and demanded a larger 32% commission. When M-Edge declined, an executive told M-Edge that Amazon would “de-list,” “play” with, or bury the accessory maker’s products so that “no one will be able to find you.” M-Edge eventually signed a new contract with Amazon, but it had to pay $6.5 million in commissions in order to do so. Even still, Amazon allegedly left its products off of the “Amazon Approved Accessory Maker” list. M-Edge is also suing Amazon for patent infringement and is arguing that it holds a patent for a Kindle case with a built-in reading light.

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Amazon updated its Kindle application for iOS devices on Wednesday with support for PDF files as well as newspaper and magazine subscriptions. A Kindle user can now email a file to his or her Send-to-Kindle address and then access it from within the application, and the app will open Adobe PDF files sent to a computer through iTunes, from Safari or directly from an email account. Amazon also added support for viewing more than 400 newspaper and magazine subscriptions inside the application. The UI for reading periodicals was completely redesigned for the iPad, and it allows users to read newspapers, magazines and print replica text books the way they were meant to be read. The iPhone and iPod touch app also features a redesigned library for quick access to the Newsstand, Kindle Books and Docs. Ars Technica noticed however, that The New York Times currently limits its subscriptions to hardware Kindle devices only, which means anyone who pays for a subscription to that newspaper may have trouble loading it on an iOS device. The update is live now and is available for free from the iTunes App Store.

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Amazon’s Kindle line was expected to be a popular option for holiday shoppers and the retailer confirmed as much on Thursday. Straying from its normally tight-lipped stance with regard to sharing sales volumes, Amazon announced that its Kindle Fire tablet and Kindle eReaders have sold more than 1 million combined units for three consecutive weeks. ”Kindle Fire is the most successful product we’ve ever launched – it’s the bestselling product across all of Amazon for 11 straight weeks, we’ve already sold millions of units, and we’re building millions more to meet the high demand,” VP of Amazon’s Kindle business Dave Limp said in a statement. “In fact, demand is accelerating – Kindle Fire sales increased week over week for each of the past three weeks. People are buying Kindle Fire because it’s a simple, fully-integrated service that makes it easy to do the things they love – watch movies, read books and magazines, listen to music, download apps, play games, and surf the web.” Limp added that the Kindle family of eBook readers are close behind Kindle Fire on the Amazon.com bestseller list. The company’s full press release follows below.

Customers Purchasing Kindles at Rate of More Than 1 Million Per Week for Third Straight Week

Kindle Fire continues to lead the way as the #1 bestselling, most gifted, and most wished for product across all of Amazon.com since its introduction 11 weeks ago

Kindle Fire sales increase week over week for each of the past three holiday shopping weeks

SEATTLE–(BUSINESS WIRE)–Dec. 15, 2011– (NASDAQ: AMZN)—Amazon.com today announced that Kindle devices remain the hottest products this holiday season – for the third week in a row, customers are purchasing well over 1 million Kindle devices per week, and Kindle Fire remains the #1 bestselling, most gifted, and most wished for product across the millions of items available on Amazon.com since its introduction 11 weeks ago. To learn more about the all-new Kindle family – the $79 Kindle, $99 Kindle Touch, $149 Kindle Touch 3G and the $199 Kindle Fire – visitwww.amazon.com/kindle.

“Kindle Fire is the most successful product we’ve ever launched – it’s the bestselling product across all of Amazon for 11 straight weeks, we’ve already sold millions of units, and we’re building millions more to meet the high demand. In fact, demand is accelerating – Kindle Fire sales increased week over week for each of the past three weeks. People are buying Kindle Fire because it’s a simple, fully-integrated service that makes it easy to do the things they love – watch movies, read books and magazines, listen to music, download apps, play games, and surf the web,” said Dave Limp, Vice President, Amazon Kindle. “Our family of Kindle e-ink readers are close behind Kindle Fire on the Amazon.com bestseller list. Customers continue to report preferring their Kindle e-reader for long-form reading, and in fact we’ve seen many customers buy two Kindles – both a Kindle Fire and a Kindle or Kindle Touch – this holiday season.”

Kindle Fire offers more than 19 million movies, TV shows, songs, books, magazines, apps and games – such as Netflix, Hulu, Pandora and Angry Birds – as well as free storage of Amazon digital content in the Amazon Cloud, Whispersync for books and movies, a 14.6 ounce design that’s easy to hold with one hand, a vibrant, color touch screen, a powerful dual-core processor and Amazon Silk – Amazon’s new revolutionary web browser that accelerates the power of the mobile device by using the computing speed and power of the Amazon Web Services cloud – all for only $199.

The $79 latest generation Kindle is for readers around the world who want the lightest, most compact Kindle at an incredible price. Kindle is now small and light enough – at less than 6 ounces – to fit easily in your pocket and carry with you everywhere, yet it still features the same 6-inch, most advanced electronic ink display that reads like real paper, even in bright sunlight.

Kindle Touch and Kindle Touch 3G feature an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch and Kindle Touch 3G are also lighter, smaller, offer audio capabilities, such as text-to-speech and deep integration for audiobooks, extra-long battery life and hold thousands of books. Kindle Touch 3G offers the unparalleled added convenience of free 3G. Kindle’s free 3G connection means you never have to hunt for or pay for a Wi-Fi hotspot – you simply download and read books anytime, anywhere in over 100 countries around the world. Amazon pays for the 3G connection so there’s no monthly fee or annual contract. Both Kindle Touch and Kindle Touch 3G include X-ray – a new feature invented by Amazon that lets customers explore the “bones of the book.”

With an Amazon Prime membership, all of the new Kindles offer access to the new Kindle Owners’ Lending Library and Prime Instant Video. With theKindle Owners Lending Library, Kindle owners can now choose from thousands of books to borrow for free – including over 100 current and former New York Times Bestsellers – as frequently as a book a month, with no due dates. No other e-reader or e-bookstore offers such a service. With Prime Instant Video, Kindle Fire owners can access nearly 13,000 movies and TV shows available to stream at no additional cost.

Customers can order the new Kindle family today: the $79 Kindle at www.amazon.com/kindle, Kindle Touch for $99 atwww.amazon.com/kindletouch, Kindle Touch 3G for $149 at www.amazon.com/kindletouch3G and Kindle Fire for $199 atwww.amazon.com/kindlefire.

Amazon’s Kindle Fire is a smash hit, with fourth-quarter sales that may exceed even the most lofty estimates reported ahead of the tablet’s recent launch. In just over six weeks of availability this quarter, analysts at Goldman Sachs estimate that Amazon will sell as many as 6 million Kindle Fire tablets. Add to that another 8 million Kindle-branded eBook readers the firm sees Amazon selling between October and the end of this year, and the retailer looks to be in store for a huge holiday quarter. ”While the Kindle Fire certainly doesn’t have the breadth of functionality of the iPad (no camera or microphone, shorter battery life and less memory), it does a few things very well, which just happen to be the few actions that users utilize the tablet form factor most often for, in our view,” Goldman’s report stated. BGR reviewed the Kindle Fire last month and we viewed it as an excellent and affordable option for many consumers looking to consume the wide range of digital content now available from Amazon.

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Strong demand for Amazon’s new Kindle Fire tablet and the continued popularity of Kindle eReaders lead to the retail giant’s best-ever Black Friday for the Kindle family of products. Amazon on Monday announced that sales of Kindle devices on Black Friday quadrupled last year’s sales, setting a new record. The company neglected to report sales figures, however it did say it sold millions of new Kindle eReaders and Kindle Fire tablets combined before the Black Friday shopping weekend began. ”Even before the busy holiday shopping weekend, we’d already sold millions of the new Kindle family and Kindle Fire was the bestselling product across all of Amazon.com,” said Amazon VP Dave Limp in a statement. “Black Friday was the best ever for the Kindle family – customers purchased 4X as many Kindle devices as they did last Black Friday – and last year was a great year. In addition, we’re seeing a lot of customers buying multiple Kindles – one for themselves and others as gifts – we expect this trend to continue on Cyber Monday and through the holiday shopping season.” Amazon also noted that the Kindle Fire tablet, which BGR reviewed earlier this month, has now been Amazon’s best-selling product for eight weeks running. The company’s full press release follows below.

Best Black Friday Ever for Kindle Family: Kindle Sales Increase 4X Over Last Year

Holiday shoppers made Kindle Fire the bestselling product across all of Amazon.com on Black Friday

Kindle Fire now the bestselling product across Amazon for 8 weeks running – ever since its introduction on September 28

SEATTLE–(BUSINESS WIRE)–(NASDAQ: AMZN) Amazon.com, Inc. today announced that this Black Friday was the best ever for the Kindle family and the popular Kindle Fire remained the bestselling product across all of Amazon since its introduction 8 weeks ago. The bestselling Kindle family – the $79 Kindle, $99 Kindle Touch, $149 Kindle Touch 3G and the $199 Kindle Fire – are available now at www.amazon.com/kindle and at over 16,000 retail locations throughout the United States.

“This was a great Black Friday for Target and for Kindle Fire, which was the bestselling tablet in our stores on Black Friday,” said Nik Nayar, vice president merchandising, Target. “We’re excited so many guests chose Target as their destination for the new family of Kindle devices and we’re sure Kindle Fire will continue to be at the top of wish lists this holiday season.”“Even before the busy holiday shopping weekend, we’d already sold millions of the new Kindle family and Kindle Fire was the bestselling product across all of Amazon.com. Black Friday was the best ever for the Kindle family – customers purchased 4X as many Kindle devices as they did last Black Friday – and last year was a great year,” said Dave Limp, Vice President, Amazon Kindle. “In addition, we’re seeing a lot of customers buying multiple Kindles – one for themselves and others as gifts – we expect this trend to continue on Cyber Monday and through the holiday shopping season.”

“We knew Kindle Fire and the new E Ink Kindles would be highly desirable gifts this holiday season,” said Wendy Fritz, senior vice president of Computing, Tablets and e-Readers at Best Buy. “If this Black Friday was any indication, they are only getting hotter as we get into the shopping season.”

Kindle Fire is the bestselling item on Amazon.com and offers more than 18 million movies, TV shows, songs, books, magazines, apps and games – such as Netflix, Hulu, Pandora and Angry Birds – as well as free storage of Amazon digital content in the Amazon Cloud, Whispersync for books and movies, a 14.6 ounce design that’s easy to hold with one hand, a vibrant, color touch screen, a powerful dual-core processor and Amazon Silk – Amazon’s new revolutionary web browser that accelerates the power of the mobile device by using the computing speed and power of the Amazon Web Services cloud – all for only $199.

The $79 latest generation Kindle is for readers around the world who want the lightest, most compact Kindle at an incredible price. Kindle is now small and light enough – at less than 6 ounces – to fit easily in your pocket and carry with you everywhere, yet it still features the same 6-inch, most advanced electronic ink display that reads like real paper, even in bright sunlight.

Kindle Touch and Kindle Touch 3G feature an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch and Kindle Touch 3G are also lighter, smaller, offer audio capabilities, such as text-to-speech and deep integration for audiobooks, extra-long battery life and hold thousands of books. Kindle Touch 3G offers the unparalleled added convenience of free 3G. Kindle’s free 3G connection means you never have to hunt for or pay for a Wi-Fi hotspot – you simply download and read books anytime, anywhere in over 100 countries around the world. Amazon pays for the 3G connection so there’s no monthly fee or annual contract. Both Kindle Touch and Kindle Touch 3G include X-ray – a new feature invented by Amazon that lets customers explore the “bones of the book.”

With an Amazon Prime membership, all of the new Kindles offer access to the new Kindle Owners’ Lending Library. Kindle owners can now choose from thousands of books to borrow for free – including over 100 current and former New York Times Bestsellers – as frequently as a book a month, with no due dates. No other e-reader or e-bookstore offers such a service.

Customers can order the new Kindle family today: the $79 Kindle at www.amazon.com/kindle, Kindle Touch for $99 at www.amazon.com/kindletouch, Kindle Touch 3G for $149 atwww.amazon.com/kindletouch3G and Kindle Fire for $199 at www.amazon.com/kindlefire.

Amazon’s follow up to the Kindle Fire tablet may feature an 8.9-inch touchscreen display rather than the 10-inch panel we have been expecting. BGR exclusively reported back in May that Amazon was working on two tablets, the 7-inch Kindle Fire we’ll see launch on November 15th and a quad-core 10-inch tablet that hasn’t been announced. According to a new report from DigiTimes, Amazon has introduced a third tablet into its roadmap and it is now scheduled to launch ahead of the 10-inch model, or even in place of the large-form slate. The site’s sources claim Chunghwa Picture Tubes and LG Display, Amazon’s display suppliers, have already begun to prepare for production of the 8.9-inch panels.

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Just ahead of the release of Amazon’s highly anticipated Kindle Fire tablet, the company has added a new perk for Amazon Prime subscribers that could be the icing on the cake for future Fire owners. Beginning immediately, all Kindle eBook readers and the Kindle Fire tablet will have access to what Amazon has dubbed Kindle Owners’ Lending Library, a stash of thousands of books that may be “borrowed” indefinitely for free. Users may borrow one title per month, and the list of available books currently includes more than 100 current and former New York Times Bestsellers. “Owning a Kindle just got even better. Today, we’re introducing a new Prime benefit built for Kindle: The Kindle Owners’ Lending Library,” said Amazon CEO Jeff Bezos said in a statement. “Prime Members now have exclusive access to a huge library of books to read on any Kindle device at no additional cost and with no due dates.” BGR went hands-on with the Kindle Fire during Amazon’s press conference, and we can definitely see the retail giant making a dent in the tablet market quickly with this $199 offering, which launches on November 15th. The plethora of value-added services available on the device for Prime members will only improve the slate’s odds in a crowded market currently dominated by Apple. Some analysts believe Amazon could sell as many as 5 million tablets during the fourth quarter alone. Amazon’s Lending Library press release follows below.

Introducing The Kindle Owners’ Lending Library

With an Amazon Prime membership, Kindle owners can now choose from thousands of books to borrow for free – including over 100 current and former New York Times Bestsellers – as frequently as a book a month, with no due dates

Books can be borrowed and read on all Kindle E Ink devices and Kindle Fire

SEATTLE—November 2, 2011—Today, Amazon.com, Inc. (NASDAQ:AMZN) announced the launch of the Kindle Owners’ Lending Library.  With an Amazon Prime membership, Kindle owners can now choose from thousands of books to borrow for free – including over 100 current and former New York Times Bestsellers – as frequently as a book a month, with no due dates. No other e-reader or ebookstore offers such a service.  With an annual Prime membership, the Kindle Owners’ Lending Library is included at no additional cost.  Millions of Prime members enjoy free two-day shipping,  unlimited streaming of nearly 13,000 movies and TV shows, and now thousands of books to borrow for free with a Kindle.

“Owning a Kindle just got even better.  Today, we’re introducing a new Prime benefit built for Kindle: The Kindle Owners’ Lending Library,” said Jeff Bezos, Amazon.com Founder and CEO. “Prime Members now have exclusive access to a huge library of books to read on any Kindle device at no additional cost and with no due dates.”

The Kindle Owners’ Lending Library offers access to a wide array of categories and genres in fiction and non-fiction, and includes popular titles such as Moneyball: The Art of Winning an Unfair Game, The Big Short and Liars’ Poker by Michael Lewis, The Hunger Games trilogy by Suzanne Collins, and Water for Elephants by Sara Gruen —plus award-winning books such as The Finkler Question and Guns, Germs, and Steel, memoirs such as Anthony Bourdain’s Kitchen Confidential , and motivational books like The 7 Habits of Highly Effective People.  Just as with any other Kindle book, your notes, highlights and bookmarks in borrowed books will be saved, so you’ll have them later if you purchase or re-borrow the book.  Books are borrowed from a Kindle device, and customers can have one book out at a time. When customers want to borrow a new book, any borrowed book can easily be returned right from their device.

Titles in the Kindle Owners’ Lending Library come from a range of publishers under a variety of terms.  For the vast majority of titles, Amazon has reached agreement with publishers to include titles for a fixed fee.  In some cases, Amazon is purchasing a title each time it is borrowed by a reader under standard wholesale terms as a no-risk trial to demonstrate to publishers the incremental growth and revenue opportunity that this new service presents.

“The Kindle Owners’ Lending Library is a great new benefit for Kindle owners and an entirely new growth opportunity for authors and publishers,” said Russ Grandinetti, Vice President, Kindle Content. “With the growth in Prime membership and the recent addition of Prime Instant Video, we’ve been able to broaden our relationships with movie and TV studios such as CBS, Fox, and NBCUniversal and significantly increase their revenue.  We’re excited to expand that investment to books – with this launch, we expect three immediate results: Kindle owners will read even more, publisher revenues will grow, and authors will see larger royalty checks.”

“We’re excited to offer titles from our ebook ‘Chapters’ series, which covers some of the world’s most popular destinations, to members of Kindle Owners’ Lending Library,” says John Boris, EVP Lonely Planet. “Our ebooks have done incredibly well on Kindle and this is a great way to showcase our travel expertise to an even broader audience.”

“We’re excited about any program that helps readers discover our authors and their books,” said David Nussbaum, Chief Executive and Chairman of F+W Media Inc. “We think this will lead to more people reading F+W’s books, and more profit for our authors.”

To learn more about the Kindle Owners’ Lending Library, visit www.amazon.com/kindleownerslendinglibrary. To learn about all of the additional benefits included with Amazon Prime, or to start an Amazon Prime free trial visit www.amazon.com/prime.

Amazon reported third-quarter earnings on Tuesday, noting net sales increased 44% from the same quarter last year to $10.88 billion. That figure is on a par with Wall Street’s revenue expectations of $10.93 billion. Amazon reported EPS of $0.14, which missed the Street’s estimates of $0.24 per share. Net income fell 73% quarter-over-quarter, however. Amazon reported net income of $63 million during the third quarter, down from $231 million in the second quarter. The online retailer said September 28th was its biggest day ever for Kindle sales, including during the previous peak holiday season. “In the three weeks since launch, orders for electronic ink Kindles are double the previous launch,” Amazon CEO Jeff Bezos said. “And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.” Looking forward to the fourth quarter, Amazon expects net sales to fall between $16.45 billion and $18.65 billion, 27-44% growth over the fourth quarter of last year. The company also confirmed better than expected demand for its Kindle Fire tablet, noting that it is building “millions more” tablets than it had initially orders. Shares of Amazon stock fell more than 14% in after-hours trading. Read on for the full press release from Amazon.

Amazon.com Announces Third Quarter Sales up 44% to $10.88 Billion; Introduced Four New Kindle Devices for the Holidays

SEATTLE, Oct 25, 2011

Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its third quarter ended September 30, 2011.

Operating cash flow increased 19% to $3.11 billion for the trailing twelve months, compared with $2.62billion for the trailing twelve months ended September 30, 2010. Free cash flow decreased 17% to $1.53 billion for the trailing twelve months, compared with $1.83 billion for the trailing twelve months ended September 30, 2010.

Common shares outstanding plus shares underlying stock-based awards totaled 469 million on September 30, 2011, compared with 465 million a year ago.

Net sales increased 44% to $10.88 billion in the third quarter, compared with $7.56 billion in third quarter 2010. Excluding the $371 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 39% compared with third quarter 2010.

Operating income was $79 million in the third quarter, compared with $268 million in third quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $14 million.

Net income decreased 73% to $63 million in the third quarter, or $0.14 per diluted share, compared with net income of $231 million, or $0.51 per diluted share, in third quarter 2010.

“September 28th was the biggest order day ever for Kindle, even bigger than previous holiday peak days – we introduced Kindle Fire for $199, Kindle Touch 3G for $149, Kindle Touch for $99, and our all new Kindle for only $79,” said Jeff Bezos, founder and CEO of Amazon.com. “In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.”

Highlights

 

• Amazon announced the Kindle Fire, a new class of Kindle for movies, TV shows, music, books, magazines, apps, games, and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, vibrant color touch screen, a powerful dual-core processor, and “Amazon Silk” – Amazon’s new revolutionary web browser that accelerates the power of the mobile device by using the computing speed and power of the Amazon Web Services Cloud. Kindle Fire is only $199.
• Amazon announced three all-new Kindle e-readers that are smaller, lighter, and more affordable than ever before. The $79 latest generation Kindle is for customers who want the lightest, most compact Kindle at an incredible price. The $99 Kindle Touch includes an easy-to-use touch screen. Kindle Touch 3G is the top of the line e-reader with the unparalleled convenience of free 3G where customers never have to hunt or pay for a Wi-Fi hotspot – you simply download and read books anytime and anywhere – all for $149. Each of these e-readers includes all the benefits of the most advanced electronic ink display that reads like real paper, even in bright sunlight.
• Amazon.fr launched the French Kindle Store offering customers a vast selection of over 35,000 French-language Kindle books. Amazon also announced that its series of free “Buy Once, Read Everywhere” apps for the most popular devices, including iPad, iPod touch, iPhone, PCs, Macs and Android-based devices, are now available in French-language versions. In addition, Amazon announced that the all-new Kindle with French navigation is available at Amazon.fr for only 99EUR .
• Amazon.com announced licensing agreements with Twentieth Century Fox and PBS that allow the millions of Amazon Prime members to instantly stream a broad selection of popular movies and TV shows from their vast libraries. These deals will bring the total number of Prime instant videos to more than 12,000 movies and TV shows from partners such as CBS, FOX, PBS, NBCUniversal, Sony, Warner Bros., and many more.
• Amazon Publishing released 61 titles in the quarter, including Kindle bestsellers “The Detachment” by Barry Eisler, “Dove Season” by Johnny Shaw, and “A Small Fortune” by Audrey Braun. Recent acquisitions include Tim Ferriss’ “The 4-Hour Chef,” Penny Marshall’s memoir “My Mother Was Nuts,” and the epic Foreworld Series project led by Neal Stephenson and Greg Bear. Amazon Publishing also announced a new imprint, 47North, which is dedicated to science-fiction, fantasy, and horror. 47North joins sister imprints AmazonEncore, AmazonCrossing, Powered by Amazon, Montlake Romance, and Thomas & Mercer.
• The Company launched Amazon.es, a Spanish-language website offering customers a vast selection of books, DVDs, video games, music, and consumer electronics at everyday low prices. Amazon.es’s convenient services include Amazon Premium, the local version of Amazon Prime, with unlimited free guaranteed 2-3 day delivery for an annual fee of 14.95EUR . The first product sold on Amazon.es was a Blu-ray pack of “Star Wars: The Complete Saga” to a new Premium customer in Madrid.
• North America segment sales, representing the Company’s U.S. and Canadian sites, were $5.93 billion, up 44% from third quarter 2010.
• International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese, Italian and Spanish sites, were $4.94 billion, up 44% from third quarter 2010. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 33%.
• Worldwide Media sales grew 24% to $4.15 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 19%.
• Worldwide Electronics and Other General Merchandise sales grew 59% to $6.32 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 54%.
• Amazon Web Services (AWS) announced new features to make it even easier for enterprise customers to utilize the AWS infrastructure. New services like Direct Connect, Identity and Access Management, and Virtual Private Clouds allow enterprises to reliably, securely, and cost effectively use the existing AWS infrastructure for their computing needs.
• AWS launched GovCloud, a new AWS Region designed to allow U.S. government agencies and contractors to move more sensitive workloads into the cloud by addressing their specific regulatory and compliance requirements. AWS also announced it has received Federal Information Security Management Act (FISMA) Moderate Authorization and Accreditation from the U.S. General Services Administration.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of October 25, 2011. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

Fourth Quarter 2011 Guidance

 

• Net sales are expected to be between $16.45 billion and $18.65 billion, or to grow between 27% and 44% compared with fourth quarter 2010.
• Operating income (loss) is expected to be between $(200) million and $250 million, or between 142% decline and 47% decline compared with fourth quarter 2010.
• This guidance includes approximately $200 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, government regulation and taxation, payments and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

The Kindle Fire hasn’t even hit the market yet but the tablet’s successor is already reported to be set for a launch in the second half of next year. Reportedly, Foxconn has secured orders for the device and is working to get the tablet out of the door and onto store shelves during that time period, DigiTimes said on Wednesday. Quanta Computer is building the current generation Kindle Fire, although Amazon is largely believed to already have a second-generation quad-core “Hollywood” tablet in the pipeline. Early speculation has suggested the Hollywood tablet will have a 10-inch display and BGR exclusively reported in May that it will be powered by NVIDIA’s quad-core Tegra 3 chipset. Foxconn has not yet confirmed it received the orders from Amazon, but the report matches up with several rumors that suggested the tablet would ship later than initially expected.

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