Posts filed under “Technology”
There’s a lot to be said about the way that technology has changed the way we experience big events. Gatherings that we once experienced only mediated through dispatches from reporters are now covered with a full-wrap intensity that leaves behind more then enough content to allow us browse our way through at our own pace concentrating…Read More
The Global Macro Monitor blog was started b an independent trader and economist and, in a prior life, was a global macro hedge fund PM/trader, headed emerging market bond trading desks on Wall Street, and an economist/global strategist, beginning his career at the World Bank in the mid 1980’s. His unique and unconventional views are…Read More
> To hell with Zuckerberg, says the Financial Times, its Jobs: “Buoyed by the iPad, Apple’s shares finally surpassed Microsoft in May to make it the world’s most valuable technology concern. Others now have Apple in their sights, forcing Mr Jobs into the competitive moves that would once have seemed out of character. Apple has…Read More
Wikileaks Exposes All Firms and Could Spell the End of Email, Says Dartmouth Professor
Tech Ticker Dec 23, 2010
Bloomberg reported yesterday that the Derwent Absolute Return Fund was seeded with an initial 25 million pounds ($39 million) and will begin trading in February. Its model? Following posts on Twitter, and tracking emotionally significant words to anticipate the market’s next jag up or down. A recent study concluded that short term market moves can…Read More
Everybody’s excited today because Bloomberg came out with some “hard” numbers on Kindle device sales for 2010 that exceeded expectations at 8 million units. That’s well ahead of the analyst consensus that Amazon would sell 5 million Kindles this year which would have more than doubled the 2.4 million that sold in 2009.
Of course, Amazon still refuses to verify any of these numbers. That’s a shame. Because even though readers and market watchers are still in the full flush of seeing electronic readers and tablets out-pace all hopes, there are some important questions worth asking about the Kindle device. Like, is there a natural ceiling for Kindle sales? And are we getting close to it?
Before I get there, let’s be clear that I’m talking about the electronic reader itself, not the Kindle service itself. Amazon seems to have won a very important victory this year that’s gone mostly un-noticed. By aggressively building and deploying the Kindle app for every hand-held device imaginable and making sure there was a Kindle app for iPad there on day one, Amazon has migrated Kindle from being device dependent to becoming a full-fledged cloud service.
This isn’t a small detail. Amazon as a device agnostic repository of your reading is a powerful market position. Under the agency pricing model, Amazon takes a 30% toll on all sales through the app. The gross margins are sure to be substantial. The barriers to entry and endowment effect for both competitors and customers will be huge. Down the road, 2010 is likely to be seen not as the year Amazon cut the price of the Kindle below $200 but the year they fended off Apple, Barnes and Noble and Google to become the dominant force in cloud-based reading.
That brings me back to the 8 million Kindle devices Amazon sold this year. That’s nothing to sneeze at. And, at first glance, Kindle device sales seem to be accelerating. Here’s how Bloomberg’s Joseph Galante and Peter Burrows put it:
In October, the company said that sales of the lighter, faster Kindles, which were introduced in July, had surpassed total Kindle sales in the fourth quarter of 2009, the company’s busiest time of year.
But one of the things we think we know about Kindle buyers is that they are heavy readers. That would make sense. The value of the device is greater for the regular book buyer than it is for the occasional reader.
Amazon is running a one day special: Today only, $59: Buy a pair for yourself.
(check out the video here)
> Interesting graphic at Wired, about one of the innovations of the Bloomberg administration: 311. Originally conceived of as a way to eliminate non emergency calls to 911, it has turned out to be a giant success, fielding its 100 millionth call recently. Here’s Wired: “Launched in March 2003, 311 now fields on average more…Read More