Amazon, like many other tablet and cell phone manufacturers, will often sell the actual product itself at a loss in order to get it in people’s hand and hopefully make the money back on the content that folks purchase on the devices. This has worked quite well for many businesses in the past, Apple being one of them (think iPhone plus iTunes).

The Kindle Fire is no exception for Amazon, but now it seems that Amazon may end up struggling, at least until the revenue from purchased content catches up. Amazon is having to create millions more Kindle Fire models than they expected due to the overwhelming volume of pre-orders. Each once sold constitutes a loss for the company, and ith more selling than expected, this could really hurt them over the next couple of quarters, especially with Christmas coming up.

However, I predict that Amazon will have no problem recovering. With all of these folks buying the Kindle Fire, most of them will be buying all kinds of content on the device through Amazon, meaning they will get their revenue back in spades once all is said and done!

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It appears that the Kindle will represent at least 10% of Amazon’s overall revenue in 2012. Analysts expect that the overall percentage of sales in 2011 will be 8%. Quite an impressive number when you consider everything that Amazon sells (they do sell more than books, you know! Haha!).

Analysts have now upped the number of Kindles that they expect Amazon to sell as well. The prediction is that they will sell 17.5 million Kindles in 2011 and 26 million Kindle in 2012.

In addition, there are now more than 1 million books available at the Kindle store. Amazon sold 124 million books last year, and they are expected to more than double that and sell 314 million this year and then a whopping 752 million in 2012.( Imagine if they hit 1 billion in 2013!) Also, as we reported yesterday, Kindle just added two new authors to their Kindle Million Club, bringing the number of authors who have sold at least a million books in the Kindle store to 6.

With so many different companies and gadgets trying to compete with the Kindle, it just keeps growing in popularity and shows no signs of slowing down soon! Why do you think this is? Of course, I know all the reasons why I love mine, but I would love to hear your thoughts! Leave us a comment about it down below!

From KindleOwners.com – your Kindle review site! New Kindle forum coming very soon!

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What was Lendle?

It is rather odd to speak about a month old application in the past tense, but it is necessary with regard to Lendle because it has already been discontinued. Lendle was an interactive website on which users could swap E-books instead of purchasing them. The site allowed Kindle users to gain access to titles that they didn’t necessarily want to buy.

Why did Amazon pull it?

Amazon decided to pull Lendle because it was not furthering the sales of Kindle titles. Lendle provided users with a means to get titles virtually free of charge. If a user had already purchased ten titles it would mean that he or she could trade all of these titles and thereby negotiate to gain access to ten more E-books. Such a system would eventually make it unnecessary for users to buy books at all.

Is it fair?

It seems grossly unfair for Amazon to pull the plug on a concept which seems so beneficial, but let’s consider social sharing of media for a moment. Sites that host the sharing of files have ripped such a hole into copyright law that movie makers and musicians no longer have any protection. Authors were always a bit more fortunate because their medium was print, but the digital era has done away with this safeguard.

For Amazon to protect its sales, it is also going a long way to protect the rights of authors throughout the world. If social sharing of E-books descended to the abysmal depths that it has in media then authors would soon have no protection whatsoever.

Where does this leave us?

Kindle has already made reading cheaper and more accessible, while retaining some protection for authors. If you are not willing to spend ten dollars on a piece of fiction that took a person years to produce, then you should perhaps walk into a local book store and just pocket a book, because, when you think about it, in a way, that is what “social sharing,” if it is a permanent sharing, eventually amounts to.

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With all the new faces in the game, will Kindle continue to compete? I think so, and here is how -

1. Cost – The Kindle still has one of the cheapest price point for e-readers out there, especially compared to the iPad.
2. Free 3G – The no-cost 3G makes the Kindle enticing as a “one-off” cost. No monthly payment here!
3. Uniqueness – Yes, there are other e-readers out there. However, none offer the same exact features. None of the others offer subscriptions to blogs and newspapers like the Kindle does, for example.
4. Title availability – While the iPad and Nook have a number of titles available, the Sony reader and Kobo do not have the same volume.
5. Brand recognition – While some of the other ebook readers are catching up to the Kindle, Kindle is still recognized as the premiere brand over Nook and Sony.
6. Screen – The e-ink screen speaks for itself.
7. Accessories – A whole industry has sprung up around Kindle lights, Kindle chargers, etc.

Many people thought the iPad would be “the Kindle killer.” However, the opposite has proven true, as they are different devices marketing for the most part to different kinds of users.

In my opinion, the Kindle is here to stay for a long time!

What do you think? Any features I missed? Let me know in the comments!

Click to read our full breakdown of the Kindle vs. iPad.

Also, check out my latest article comparing the Kindle DX vs. iPad over at Info Barrel.

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The Kindle 3 is here, and for only $139, it’s a steal! With its lightning fast download time, high definition surround-sound (how cool is that!), and several other new features, the unit takes reading to a whole new level of experience.

This newly remodeled reader is thinner, lighter, faster, and makes reading easier than with any previous Kindle model.   Weighing in at only 8.5 ounces, the sleekly designed electronic reader is lighter than a paperback book.   It is only 1/3” thick and feels great in the hand.  This new model is the thinnest Kindle yet.

Kindle 3 uses the latest electronic ink technology to create crisp, clear text that has a 50% greater contrast than before.  The screen isn’t backlit, so reading is comfortable, even in bright sunlight.  The addition of this feature means that Kindle users can read for hours with no eyestrain.

In the new model, pages can easily be turned with either hand, a great new feature for any of you who get tired of pushing that “next page” button. Also, this model displays text in eight different font sizes.

This Kindle also has the longest battery life yet.  Users can read up to a month without recharging.  This makes the new Kindle the perfect companion at home or on the road.  With built in WiFi, users can purchase the latest books, magazines, and blogs practically anywhere.

Storage capacity is remarkable on the new Kindle. The unit can store up to 3500 books and documents with no problem.

If you are looking to upgrade, Amazon makes it easy to switch from one Kindle to the next. Click here to go to Amazon and check it out now!

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I love the fact that my Kindle syncs over 3G. I can take it just about anywhere and download just about anything! But for those of you who might not have the best 3G coverage or who lives outside the US or travel internationally, you may be tied to your computer to download your books.

The new Kindle with wi-fi offers the perfect solution! Now you can update your Kindle anywhere that has a wi-fi signal with these new models. There are two separate models – one with wi-fi only and one with wi-fi and 3G (which is still free!).

Also, the price has been lowered again. Amazon must know the Kindle has a lot of competition these days, because they just keep dropping their prices – $139 for the Kindle wi-fi, and $189 for the Kindle wi-fi plus 3G.

These new Kindle models also have a few of the features that Amazon brags about with the recently released Kindle DX Graphite -

They have better, easier to read fonts than the Kindle 2 or original Kindle DX.

They can now store up to 3500 books – double the capacity of the last model.

The screen has 50 %better contrast.

My favorite new feature, since I always forget to plug mine in – a battery life up to one month (4X better than the previous models).

A tweaked web browser for use with wi-fi (trying to compete with other tablets?).

What do you think? Will you be upgrading, or holding out for the Kindle 3 (which we will discuss in more detail next week)? Leave us a comment!

Check out our review of the top Kindle DX covers and cases.

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The ebook readers war is hot hot hot, and we as consumers benefit all the way to the bank. Ca-ching!

If ever there was a time to snatch up the Kindle from Amazon, now is the time.

Essentially if you’re looking for a digital reader that has free WIFI built-in, is portable, has no distractions such as video games or email, the Kindle might be the device for you.

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These are luxurious without the guilt, as three of the models are made with canvas and a soft but durable twill interior. Nice! Who needs leather? Not I. The covers are made specifically for the Kindle 2 and with Furstenberg’s touch, will surely add a splash of glamor to your digital reader.

With a pink twill interior and a signature shiny gold DVF toggle, this Diane Von Furstenberg Kindle cover is perfect for the ladies!

Site description:

• Designed by Diane von Furstenberg exclusively for 6″ Display, Latest Generation Kindle
• Cotton canvas spotted cat denim blue print cover
• Twill blend interior with business card holders
• Kindle-compatible hinge holds device in place

via Amazon

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When it becomes available, you will be able to download it via Amazon.com, and once you receive your iPad, you can view, download, and read Kindle books. This is a great development, as Kindle books are rumored to be cheaper than what iBooks will have available.

Through the Kindle for iPad app you will have 420,000 ebooks available for your reading pleasure. A vast library indeed.

via Amazon

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