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Tag: Kindle

  • Kindle Touch Update 5.1.0 Now Available

    Kindle Touch Update 5.1.0 Now Available

    A software update for Kindle Touch devices has just been released. The update will be distributed directly to e-readers via Wi-Fi in the coming weeks, but users can download it right now at Amazon and then transfer it to their Kindle Touch using a usb cord. The update brings the Kindle Touch firmware up to version 5.1.0.

    Major changes accompany the update including:

    • Support for languages other than English, including German, French, Spanish, Italian, and Portuguese
    • Instant translation of highlighted text to another language
    • The ability to switch between landscape and portrait mode, even while in books and PDFs
    • New formatting and layout improvements
    • Extended sharing options that will allow users to comment to Facebook or Twitter from anywhere in a book

    Though the software update won’t turn a Kindle Touch into a Kindle Fire, the Touch still supports many cool features. And at only $99, it’s an e-reader that’s hard to beat unless you abhor all types of Digital Rights Management (DRM).

    The new feature that seems most exciting is the intant translation support. It will allow readers to tap or highlight text and have it translated into another language instantly using Bing’s translator. The dictionary on Kindles has always been a godsend while reading books from authors who have an extensive vocabulary (China Miéville, I’m looking at you), so this new translation feature will certainly help reading comprehension in cases where authors love to mix in foreign phrases. Sadly for science fiction and fantasy fans, though, I doubt the feature will translate Sindarin or Klingon into English.

  • Amazon: DoJ Deal With Publishers “Big Win” For Kindle Owners

    Following the U.S. Department of Justice’s decision to file a lawsuit against Apple and five other book publishers for their collusion to inflate e-book prices, one company sitting on the sidelines is looking forward to reaping the benefits: Amazon.

    The Justice Department announced today in a statement that it had reached a settlement with three of the largest book publishers – Hachette, HarperCollins, and Simon & Schuster – in the United States. During a press conference, U.S. Attorney General Eric Holder said, “If approved by the court, this settlement would resolve the Department’s antitrust concerns with these companies, and would require them to grant retailers – such as Amazon and Barnes & Noble – the freedom to reduce the prices of their e-book titles.”

    Amazon, as you would imagine, was delighted with the news that it would be free to market e-books at a lower price. “It is a big win for Kindle owners,” the company said in a statement. “We look forward to being allowed to lower prices on more Kindle books.”

    Aside from pushing more e-books into the market, the move could also be advantageous for future sales of Kindles. As more and more people continue to use mobile devices as their preferred method for reading digital material, Amazon could be in a position wrest away any market share that Apple managed to capture since the launch of its iPads in 2010.

    And while this may not be the best news in the world if you’re a book retailer, lower e-book prices will most likely lead consumers to continue their starry-eyed affection for Amazon.

    [Via CNET.]

  • DOJ Could Sue Apple Over E-Book Pricing Today

    The Department of Justice could be filing a lawsuit against Apple over allegations of e-book price fixing as early as today, according to a recent report. Settlements with several of the publishers that were also targeted in the investigation could come this week, as well.

    Citing “two people familiar with the matter,” Reuters reported last night that while some of the publishers have been engaged in settlement negotiations with the government, Apple has not. Early last month the Justice Department issued warnings to Apple and five major publishing houses – Simon & Schuster, Hachette, Penguin, MacMillan, and Harper Collins – that it was investigating them for violations of anti-trust regulations.

    When the iPad launched in 2010, Apple announced agreements with several major publishers that completely changed the landscape of e-book sales. Previously, e-books had been sold using the same wholesale model under which physical books are sold: the publisher sells the books to the retailer (Amazon, Barnes & Noble, etc.), and the retailer then sets the price for the books. With the introduction of Amazon’s Kindle reader and the growing popularity of e-books, however, the publishers began to be unhappy with this model. In order to sell units of the Kindle, Amazon was selling many e-books at or below wholesale. Publishers worried that this practice would negatively impact the sales of hard copy e-books – particularly hardcover editions.

    Prior to the launch of the iPad, Apple negotiated with the publishers to sell e-books through the iBooks store under an agency model. This model mirrors the pricing model in Apple’s App Store: the e-book prices are set by the publisher, and Apple receives 30% of all sales. While these agreements were extremely unpopular with both consumers and retailers (other than Apple), the publishers were extremely pleased. With Apple – and the immense popularity of the newly released iPad – behind them, the publishers were able to strong-arm Amazon and Barnes and Noble into similar agreements.

    These agreements, however, caught the attention of both the U.S. Justice Department and the European Commission. Both organizations worried that the agreements between Apple and the publishers amounted to price fixing and violated antitrust laws. While there has been no word on the progress of the European investigation in some time, it seems that the Justice Department has concluded that antitrust laws were violated.

    While the terms of the settlements with the publishers are not known, it is highly likely that they will be required to scrap the agency model and return to the wholesale model for e-books. What that will mean for the publishers’ bottom line is not entirely clear, however it could mean a significant boost in revenue for Amazon and Barnes and Noble, as well as a drop in e-book prices. The DOJ’s lawsuit against Apple will likely pursue a similar outcome. There has also been some speculation that the practice of windowing – releasing an e-book weeks or even months after the hardcover edition comes out – may be a target of the DOJ investigation as well.

    What do you think? Does the agency model constitute price fixing? What about e-book windowing? Is the wholesale model fair to publishers? Let us know what you think in the comments.

  • Amazon Introduces the Spanish Version of E-Books

    Amazon.com announced a new spanish version of Kindle e-books today, obviously being called, “eBooks Kindle en Español”. In addition to offering of the most popular spanish selling title the service also offers special features designed just for spanish speaking US customers. Currently the service offers about 30,000 spanish language titles, but more are on the way.

    Russ Grandinetti, Vice President of Kindle Content comments on the addition of the new service:

    “We’re excited to introduce Spanish language storefronts on all Kindles, as well as a dedicated store for our Spanish-speaking customers in the U.S.,”

    “We expect our Spanish-speaking customers to enjoy both the newly-added books in Spanish, and the improved shopping and reading experience-including dedicated customer service in Spanish-that we’ve added to eBooks Kindle en Español. And we’re looking forward to continued expansion of our store for Spanish language readers around the world.”

    Here’s what eBooks Kindle en Español includes:

    * All of the Spanish-language Nielsen best sellers available as eBooks in the United States, and 65 of the top 100 Spanish-language print best sellers from Amazon.com

    * The largest representation of Mexican authors, including Jose Emilio Pacheco, Carlos Monsivais and Sergio Pitol

    * Kindle Singles in Spanish, including Singles by best-selling authors Kurt Vonnegut and Susan Orlean

    * An exclusive selection of Dora the Explorer and Go Diego Go books in Spanish

    * Compilations of articles from “El Pais,” including exclusive pieces from Mexican journalists writing about Mexican current affairs

    * Subscriptions to 14 leading Latin American newspapers such as El Universal and La Nacion

    * Popular English-language books translated into Spanish, such as the Hunger Games series, the Twilight series, “Steve Jobs,” “The Help,” and books by authors Stephen King, Nora Roberts and Joel Osteen

    Author Paulo Coelho also comments on the release of the new service:

    “As one of the first authors to make my work available digitally, and an author whose entire catalog is available digitally, I’m very excited that my Spanish-speaking audience will now be able to buy my books in the Kindle Store with this improved experience,”

    “I believe that many more people will have access to great stories from diverse authors with this improved digital experience, and Kindle readers will also now get to read my new work, ‘El Libro de los Manuales,’ available exclusively in Spanish from the Kindle Store. I am grateful to all of my Hispanic readers in the United States for their ongoing support to my entire canon.”

    So as more titles become available the service will grow in popularity. I am surprised to see Amazon waiting so long to deliver this much needed version of the popular Kindle e-books library. Time will tell, but I think this is going to be a real money maker for Amazon.

  • Survey Shows E-Reading On The Rise

    A new study has found that Americans’ use of e-readers to read their books is on the rise. Over a fifth – 21% – of Americans have now read at least one e-book, and their popularity is growing, especially among avid readers.

    The Pew Internet survey polled 2,986 Americans aged 16 and up between November 16th and December 21st 2011. Follow-up surveys were conducted January 5th-8th and January 20th-February 19th in order to gauge the impact of the 2011 holiday season on the use of e-readers. The survey found that e-books are most popular among avid readers, and that e-book readers use a variety of devices to read their books, including tablets, smartphones, and dedicated e-readers like the e-ink Nook and Kindle.

    The survey also found that the 2011 holiday season had a significant impact on the use of e-readers. During the initial survey, only 17% of respondents said that they had read an e-book in the last year, compared to 21% after the holiday season. E-readers were apparently major Christmas gifts, as ownership of e-ink readers (like the Nook and the Kindle) jumped 9% from December to January. Ownership of tablets – including the iPad and the Kindle Fire – also jumped 9%, from 10% to 19% of respondents in both cases.

    Interestingly, e-book readers read more books in all formats than those who don’t read e-books. The average respondent who said they read e-books had read 24 books in any format in the past twelve months. Those who didn’t read e-books had read an average of 15 books during the same timeframe.

    There was no difference between tablet owners and owners of other e-reading devices in terms of the number of books read, but there were other differences. Women, whites, the well-educated, and those over 65 all reported reading more books in the past year than men, minorities, the less well-educated, and under 65 age groups.

    Interestingly, the use of e-readers appears to be a driving force in the increase of reading in general. Forty-one percent of tablet owners said they spend more time reading thanks to the increasing availability of e-content, while 35% of e-reader owners said the same. Overall, 42% of e-book readers say they read more than they used to. What’s more, this trend increases the longer you own an e-reading device (tablet or e-reader): 41% of those who have owned such a device for at least twelve months read more than they did before, while 35% of those who have owned their device for six months of fewer say the same. This is especially true of men under the age of 50.

    Even so, print books are not (yet) in danger of being overtaken by e-books as the preferred method of reading. Those who read e-books said that they prefer e-books for ease of access and portability, but when reading to children and sharing books with friends they still preferred printed books. The study also found, though, that 45% of people who are reading a book on a given day are reading an e-book. What’s more, they’re doing it on a variety of devices. Of those who read e-books, 41% said they use a dedicated e-reader like a Nook or Kindle, while 23% do so on a tablet like an iPad, Nook Tablet, or Kindle Fire. Also, 29% read on their smartphones (Amazon, Barnes & Noble, Apple, and Google all have apps that allow e-books to be read on smartphones as well as tablets). Perhaps most surprisingly, 42% of respondents said that they read e-books on their computer.

    E-books vs. Printed Books

    The survey also found some unfortunate news for libraries: the majority of book readers of all kinds preferred to buy their books rather than borrow them. Readers of e-books were more likely to feel this way: as 61% said they preferred to buy rather than borrow, while 54% of those who don’t read e-books preferred to buy. Conversely, only about a third (32%) of those who listen to audiobooks preferred to buy rather than borrow. The fact that audiobooks are usually considerably more expensive than their print or digital counterparts is likely a major factor in that.

    The full study can be found here.

    How do you read? Do you use an e-reader? A tablet? A smartphone? Or do you prefer printed books? Will e-books ever replace printed books? Let us know what you think in the comments.

  • Kindle Fire Software Updated To Version 6.3

    There’s no denying that the Kindle Fire is a success for Amazon. While Apple still has a stranglehold on the tablet market, Amazon has carved itself out a nice little niche market. Even though Amazon might have three new Kindle Fire tablets coming out later this year, they aren’t going to let that stop them from updating the software of the current models to include nice new features.

    The Kindle Fire software has been updated to version 6.3. The update brings with it seven major changes that focus on ebooks, textbooks, movies and housekeeping. The big theme though is sharing as Amazon has added new social elements to reading ebooks.

    The new sharing mode allows readers to highlight specific passages in ebooks and share them with other Kindle Fire users and across Facebook and Twitter. A user can also make a note, perhaps explaining a passage in the Tao Te Ching, that other readers can view.

    On that same note, Amazon is also adding Book Extras to their ebook offerings. Readers can now view supplemental material about the book they are reading. This includes “descriptions of characters, a glossary of common terms referenced in the book, and more.” A colleague and I both agreed that this feature would be especially useful in fantasy or sci-fi novels that use their own vocabulary and sometimes have convoluted character relationships.

    All your notes and writings can now be backed up on Amazon Cloud. They can of course be retrieved at any time. This also allows personal documents to be synced with the server so that it saves your notes, highlights and last page read.

    The Kindle Fire now features “print replica textbooks.” It may not be as nice as Apple’s interactive iBooks option on the iPad, but it still beats out having to buy the actual textbooks in stores. Amazon claims that students can save up to 60 percent off the list price. They’re called “print replica” because they are exact clones of the print copies of the textbooks with all the “rich formatting, color and layout of the print editions.”

    A nice feature for online readers is a “reading view” for Amazon Silk. This feature brings a body of text on a Web site to the forefront while leaving the ads and other material behind. Silk will bring up the text content into a “reading optimized, single screen view.”

    In an effort to become more consumer friendly, movie rental times don’t begin to expire until the user begins to watch the movie. It used to be that it would begin the countdown when the user began downloading the movie.

    Amazon also says that the Kindle Fire is getting a few performance upgrades with the newest update. The most prominent being a faster reconnect of Wi-Fi after the Kindle Fire has been asleep.

    For more information and instructions on manually downloading the update, check out the Amazon Kindle page. The new update makes reading more fun and social which brings an almost book club feeling to ebooks. Apple would be smart to pay attention and bring that kind of functionality to their iBooks service.

    As an aside, it’s worth pointing out that the new update will un-root your Kindle Fire. According to The Next Web, however, there is already a work around if you want to keep custom software on your Kindle Fire.

  • Three New Kindle Fire Models Coming This Year?

    With the Amazon’s Kindle Fire tablet just past the ripe old age of four months, rumors are starting to swirl about what Amazon has coming next. Twice already this year we’ve seen reports about a 10-inch model being in the works.

    Now it looks like we might be getting not one, not two, but three new models of Kindle Fire this year. A new report today from CENS.com in Taiwan claims that Amazon is placing orders for three different displays for new Kindle Fire tablets. Interestingly, none of the displays is ten inches. There are two 7-inch models and one 8.9-inch model. The two 7-inch models have different pixel counts – one is 1024×600, the other is 1280×800. The 8.9-inch display is 1920×1200. The displays suggest that Amazon is preparing to split the Kindle Fire line to target different price points. The lower-resolution 7-inch model will be the low-end model, the second 7-inch model will be the mid-range model, and the 8.9-inch model will be the high-end model. With that lineup, Amazon would have the option of keeping the low-end model at the current Kindle Fire’s $200 price point, or selling the mid-range model for $200 and aiming even lower with the low-end model.

    At this point everything is still just rumor and speculation. Amazon could do just about anything with the Kindle Fire line at this point. One thing they are not likely to do, however, is release new models of Kindle Fire before the third quarter of this year at the earliest. The current of Kindle Fire was released in November, and has only been on the market for four months. Releasing a new lineup now is likely to annoy customers who ponied up $200 less than half a year ago for their Kindle Fire.

  • Hunger Games, Best Selling Kindle Series of All Time

    Suzanne Collins is the best selling Kindle author of all time, and she is about to pad her wallet a little more when The Hunger Games movie premieres across the country next week.

    The Hunger Games, Catching Fire and Mockingjay currently hold the top three positions on the Amazon Best Sellers of 2012 print and Kindle book lists.

    Since its release in 2008, the trilogy has sold over 11 million copies. Amazon has revealed the top cities that have purchased a copy (print and Kindle edition) of the Hunger Games Trilogy. Topping the list is Sunnyvale, California.

    1. Sunnyvale, CA
    2. Salt Lake City, UT
    3. Tallahassee, FL
    4. Seattle, WA
    5. Orlando, FL
    6. Pittsburgh, PA
    7. St. Louis, MO
    8. Provo, UT
    9. San Francisco, CA
    10. Naperville, IL

    Amazon is giving away a Kindle Fire and the Hunger Games book trilogy to twelve winners in the Amazon.com The Hunger Games Book Trilogy Sweepstakes. Visit www.amazon.com/hungergames to enter for a chance to win. The sweepstakes will end after premiere weekend, March 25, 2012 and there is no purchase necessary to enter.

    “There’s no denying that the Hunger Games has become a worldwide phenomenon, and we love that it all started with a great book,” said Jessica Schein, Amazon.com Young Adult Books Editor. “These books appeal to customers of all ages – adults and teens alike – and you can see from our Top 20 list they’re captivating readers across the whole country. All three books in the trilogy are best sellers in print and on Kindle, and now our customers have made Suzanne Collins the best-selling Kindle author of all time.”

    Can The Hunger Games Really Beat Twilight Saga At The Box Office? – http://t.co/8gzcdTwq http://t.co/KdjSlVF6(image) 1 minute ago via web ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Woke up early this morning, now I have plenty of time to judge my Facebook friend that “just finished reading the first Hunger Games book!”(image) 2 hours ago via Twitter for iPhone ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Hunger Games. Amazing.(image) 3 days ago via Twitter for iPhone ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • Kindle App For iPad Gets Retina Display Makeover

    Amazon has updated their popular Kindle app for iOS devices today, the company has announced. The new update brings several update that make the Kindle app more like the Kindle Fire tablet, and adds retina display support for the new iPad, which releases tomorrow.

    Retina display optimization includes much-improved graphics with sharper fonts and sharper, brighter cover art for books in users’ library. The app also adds some features from Amazon’s popular Kindle Fire tablet including a redesigned library interface. The new app also includes the ability to switch easily between content stored on their device and content stored in the cloud.

    Kindle for iPad users also have access to Amazon’s touch-optimized Kindle Store, which they access from their Safari browser. The Kindle app also includes several features Amazon has launched in recent months, including the ability to open PDFs from Safari or the Mail app, as well as send them to the cloud.

    The Kindle app is a universal iOS app and is, as always, a free download from the iOS App Store. Check out some screenshots below, then let us know what you think in the comments.

    Kindle for iPad

    Kindle for iPad

    Kindle for iPad

    Kindle for iPad

  • Amazon Plans To Launch Two Tablets In 2012

    It’s still early in the year and already things are looking up for people interested in a new tablet before the end of 2012. Amazon has plans for the second half of the year to launch two new tablets. The tablets are planned to be 7″ and 10″ models. Amazon will still be sourcing the touch panels for these tablets from TPK Holdings and Wintek and will also be outsourcing the production of the tablets to Foxconn Electronics and Quanta Computer.

    The Kindle Fire has been a really great seller for Amazon, so it should come as no surprise that Amazon appears to be enjoying the wave of tablet sales and have focused their energies in that direction. In addition, Amazon has been reducing orders for it’s e-Paper products and increasing its supply of E Ink. This is likely a sign that they may be reducing their focus on traditional Kindle eBook readers.

    Until now, there has been a price gap and even a weight penalty between full tablet PCs and devices like the Kindle. Amazon has been influential in leading the charge towards lower cost Android tablets. In the last quarter of 2011, Amazon shipped nearly 4 million of them. In addition to the traditional eBook category, the company also has an excellent opportunity to sell content such as music, video and apps to general tablet PC owners. It’s understandable that with these indicators, Amazon is looking forward to an Android and LCD powered future.

    @RishikaVijan wait around for a while… The Amazon kindle FIRE might give iPad a run for its money. And asus is getting The Padphone. 2 minutes ago via Twitter for Android ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    #technologynews Kindle Fire Getting A Ten Inch Model Later This Year [RUMOR]: Amazon may be planning… http://t.co/me7nnEh2 #socialnews 5 minutes ago via twitterfeed ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • Apple Likely Producing iPad Mini Screens

    Apple Likely Producing iPad Mini Screens

    Apple’s iPad makers have began delivering samples of 7.85-inch tablet panels to manufacturers for verification, according to Digitimes. Volume production is said to begin some time in the third quarter of 2012, according to industry sources. An iPad Mini would be a direct response to Amazon’s bestselling Kindle Fire, Barnes and Noble’s Nook, as well as other 7-inch Android Tablets.

    One can pretend this iPad has a 7.85 inch screen, to visualize an iPad Mini:

    ipad

    Steve Jobs thought that the present size of an iPad is the smallest possible for a tablet, though some users consider its size to be bulky, and would like something sized between an iPad and an iPhone – about 7 inches. Earlier this month, Ezra Gottheil, an analyst with Technology Business Research, told the Chicago Tribune that Apple expects to release an iPad Mini later this year. In response to Jobs’ assertion that a 7-inch screen would be too small for an iPad to “express the software,” Gottheil speculates that Apple might include a keyboard accessory with a mini iPad. “I believe that’s always been in the plan,” Gottheil adds. “Actually, that’s a good form factor for some users, and although they will also charge a premium above other similar-sized tablets, they want to protect that price flank.”

    Apple has sold a lot of iPads so far, and grabbed a nearly 60% share of the tablet market in 2011. Still, Apple is losing market share to Android tablets, falling to 57.6% in Q4 2011, according to data from Strategy Analytics. In Q4 2010, iPads had 68.2% of the worlds tablet market. Digitimes estimates that the price of a 7.85-inch iPad would likely be set at US$249-299, considering Apple has lowered the price of the 16GB iPad 2 to US$449, as an addition to the latest on iPad mini rumors.

  • Amazon Kindle Owners’ Lending Library Hits 100,000 Titles and Grows Royalties for Authors

    One million Kindle Direct Publishing (KDP) select books have been borrowed since the launch of the Kindle Owners’ Lending Library program in November. The library now houses over 100,000 books, which is a huge increase considering the library started out with only 5,000 titles, and includes a third of the Top 20 Kindle Best Sellers like The Hunger Games Trilogy.

    The KDP program has also been helping aspiring writers like Patricia Hester, a semi-finalist for the 2009 Amazon Breakthrough Novel Award and author of The Clover Mystery Series, achieve their dreams by generating worldwide interests in their publications, increasing their sales, and winning more fans. Hester had tried to market herself in other venues, “after a year of marketing ‘Whispers from the Ashes’ in book clubs, genealogical magazines, and local newspapers with steady, but slow results,” but her decision to enroll in the KDP club was key in her recent success and she stated that “the results were amazing.”

    Barnes and Nobles has refused to sell Amazon publishing books due to Amazon’s “continued push for exclusivity with publishers, agents and the authors they represent” because it prohibits B&N from offering certain e-books to their customers.This feud has “prevented millions of customers from having access to content.”

    Despite being branded with a scarlet “S” for self-interested, it is clear that Amazon has been helping authors increase their royalties.

    Independent author, Terri Reid, also experienced a tremendous increase in the sale of her paranormal mystery novels (up by 800%). Reid credits KDP and her ability to offer books to fans for free for her recent financial gains.

    The lending library is only available to Kindle owning Amazon Prime members. There are no due dates on items and members can download one book a month.

  • Exclusive Interview: Self-Published Author Kerry Wilkinson Outsold Patterson, Stieg Larsson

    Exclusive Interview: Self-Published Author Kerry Wilkinson Outsold Patterson, Stieg Larsson

    Kerry Wilkinson was the best-selling ebook author on Amazon for the last quarter of 2011. And, Kerry Wilkinson does not have a publisher.

    Let’s take a moment to let that process. Kerry Wilkinson is a self-published author. And, in the last quarter of 2011 – that includes Christmas – his digital book downloads outsold James Patterson, Stieg Larsson and Stephen King.

    His first book was called “Locked In” and is a mystery about a a body found locked in a house, with seemingly no way in or out of the house. The hero of that book, Detective Sergeant Jessica Daniel, was such a great character that he built a subsequent series around her. To date, there have been three Jessica Daniel books, selling over 250,000 copies – again, self-published.

    After news of Kerry Wilkinson’s success broke, I contacted him for an interview. We traded some emails and he was very cordial and cooperative. Recently, the Daily Mail (Wilkinson lives in England) did an article on “vanity-publishing” authors – an archaic term that is seldom used anymore now that self-publishing is fast becoming a legitimate endeavor in its own right. The article included Wilkinson as an example of the success of this movement. But, apparently, they did not speak to him directly at all. This did not sit well with him, and he spoke out about their mischaracterizations.

    So, let’s let the man speak for himself. I asked him about self-publishing, submitting to Amazon, and his writing process in general. In Stephen King’s book “On Writing”, he discusses his process, where he sits, his plot planning (or lack thereof). His methods work for him and others emulate them. But, let’s see how a self-published author with a day job does it.

    How long have you been writing?

    In terms of fiction – I started in April 2011, so not very long. But I’m a trained, professional journalist so I’ve been writing in one way or another for at least 15 years. I’m 31, so that’s half my life.

    What experience do you have in “legacy publishing” (the traditional publishing house route) before your e-publishing efforts?

    Absolutely none.

    Tell me about your first e-publishing experience, “Locked In”. Did you do the uploading and other work yourself? Was it intimidating or difficult?

    I did everything myself. It wasn’t intimidating at all because I had no expectations. I didn’t write it to be released, I wrote it because I wanted to prove to myself that I could actually create something. If no-one bought it, then so what? I had a good job away from the writing and I now have a better one. I didn’t find the conversion or uploading too hard. I don’t think too many people would struggle with it.

    How successful has e-publishing been for you so far?

    It has completely changed my life. Even if I never sold another book, I can always say I’ve written a number one bestselling book. Not many people can say that. I have made money from the books – not the amounts some might think, but a nice figure.

    How long does it take you to write?

    The only thing that takes any real time is the plotting. Sometimes that takes weeks, sometimes months. I essentially wrote five books back-to-back in around nine months. They all stemmed from one enormous brainstorm – but I worked hard too. I would get up at 5am, write for an hour, go to work for a 10-hour shift, write on my lunchbreak, drive home, then write until I went to bed.

    It’s easy to say “you write quickly” – but once I have my plan, I’m just joining the dots. Being able to touch-type helps but I only ever do what works for me. I’ve since heard from people who aim for 1,000 words a day. Or people who write for three hours, three times a week. I could never work like that. I treat it like a full-time job. The fact I already have a full-time job just means I work harder. I think it’s about finding what works for you.

    Either way, it’s not like working down a mine is it? I get to sit on a sofa and make things up.

    Do you outline?

    Extensively. The plot outlines can be 5,000 words on their own – but that’s what lets me work quickly. The entire book is already written in short form before I start properly. That means that, when I do start writing the actual script, I already know what is happening and when it is happening. It doesn’t mean I don’t go off on tangents or come up with better ideas as I’m working – but because I know where I’m trying to get to, it means I’ve never had writer’s block.

    What kind of routine or procedure do you have for writing?

    I pretty much need it to be quiet. At worst I can have some music on but I can never focus if I have the television or radio on – or even if other people are about. Basically, I just get on with it. It’s really easy to make excuses, or get distracted but I’m pretty disciplined.

    Tell me about your cover art. Do you work with a designer? How important do you think this is to your sales?

    No, I’ve just winged it by myself. I think the simplicity of the cover for Locked In has worked in its favour.

    What other writers do you follow or communicate with in the realm of e-publishing?

    Very few. A couple have emailed or tweeted me at various points and I offer what I can. I don’t really have the time. The more time you spend on message boards, the less time you’re writing. Considering I have a full-time job and a wife too, time is precious.

    For a reader, how can one quickly differentiate between good stuff and junk in making a decision about what to download?

    Perhaps the best way is to download the sample before you buy the book. If the first 10 per cent is good and you like it, then it’s probably worth a punt.

    Where do you see e-publishing going in the near future?

    In America, people have already read about people like John Locke and Amanda Hocking – but it took a bit longer to hit the UK. Now people such as Louise Voss & Mark Edwards – plus myself – have begun to have a degree of success too, getting large coverage in the process.

    In the short-term, people will start to bypass agents at the first stage and upload their own work. If it does well, it gives them a platform to either keep going themselves – or then go to an agent/publisher. The “middleman” of agents will either end up being cut out, or they won’t be involved until later than might have been traditionally so.

    That’s not to say agents won’t still have a role, because there is so much benefit to having someone help you sell things such as overseas translation rights and audio book rights.

    As for publishers, ebooks aren’t going anywhere. I think publishers will begin to copy some of the tactics indies use in terms of pricing the first book in a series at a very low price in order to attract readers through the quality of the editing and story. Self-publishers can compete on price and with characters and story – but can never battle when it comes to a professional editing experience. Publishers should play on that. If I were them, that’s what I’d be telling people: “Why buy a book with typos when you can buy the real deal?”

    But you have to think of the readers too. Cheap doesn’t mean a bargain from a self-publisher but, at the same time, expensive doesn’t mean good from a traditional publisher either. If someone pays £12 ($19.00 U.S.) or more for a brand-new book which is dreadful, they’re not going to worry about wasting £1 on a self-published book which is equally poor.

    It’s not about price, it’s about value. Someone can buy all three of my books for £6 ($9.50 U.S.). Are they perfect in terms of copyflow and editing? Of course not. But, if you’re charging £12 for a digital version of one title, then it’s not bad value given how many people have enjoyed them. That said, if that £12 book is perfectly edited and gives readers an accurate reflection of what the description claims it is – which doesn’t always happen – then that has value too.

    Publishers will start to focus on things like the importance of a good sample and so on but the key thing is how long it takes for them to figure that out.

    The biggest danger to them won’t be self-publishers as such, it will be their own mid-list authors who see people like me selling huge numbers even though I started with no following. They will look at the traffic to their own website and the number of Twitter followers, etc, they have and realize they already have an in-built fanbase. They’ll look at the 70% royalties available through Amazon and compare it to their own deals.

    Sooner or later a really big-name author will go fully self-published.

    Self-publishing used to be the stigma of authors who couldn’t find an agent, couldn’t get a publisher, just weren’t quite ready for prime time. But, that notion is changing fast with the advent of personal e-readers like the Kindle from Amazon and the ease of uploading material to Amazon’s website. Authors can now bypass the traditional machinery that stood between them and their readers.

    At first, hardly anyone saw any challenge from the e-reader market to the traditional methods of publishing. But, as Amazon, Barnes and Noble and others continued to pump money into the e-reader market, and consumers bought them at staggering rates, the potential audience for e-published authors grew quickly.

    And, it’s not just dedicated e-readers that spread that possibility. Kindle has apps that allow you to read their books on an iPhone, iPad, Windows phone, Android device, Blackberry, or even within a browser on either Mac or PC. You don’t even have to own a Kindle to read Kindle books. Add to that the recent capability of public libraries to now make their e-book titles available to Kindle readers and you have a widespread base of readers who are looking for material.

    Onto this ripe field of eager readers steps self-published authors who offer their books at prices far below those of traditional publishing houses, and still make good money at that price. For example, Kerry Wilkinson’s first e-book still sells for 99¢. James Patterson’s e-books, on the other hand, sell for $12.99. Now, if you just got a Kindle for Christmas and were looking to load up, doesn’t 99¢ sound better to a first-time buyer than $12.99?

    But, what about quality? Isn’t there a great potential for really lousy material to be foisted off on new buyers? Certainly there is. And, it does happen. Some “authors” even plagiarize other material, including online fan fiction, erotic fiction, and even classic books that have passed into public domain. But, there are two huge tools that buyers have that can prevent a lot of misery for them: user reviews, and free samples.

    Amazon’s user reviews are quick to point out illegal material, or even just e-books that are poorly written, badly formatted, or simply not edited well at all (misspellings, unintentional bad grammar, etc.) The subpar material gets flushed out in full view.

    Then there is the ability to download a free sample of any book in the Kindle store. A sample that gives you the entire first chapter of a book usually tells you all you need to know about taking a chance on the book. And, if all else fails and you get a dud (something really badly done, not just contrary to your personal taste), you can return it. If it is an illegitimate work, you can report it to Amazon.

    So, with low risk and good tools like that, good self-published authors are wading into the game and sometimes outselling the big guys.

    Self-published authors who want to be taken seriously and establish a reputation on Amazon are meticulous about their editing, layout and cover art. This is where some end up spending a bit out of pocket to be sure their material is of professional quality.

    The playing field is leveling, much the way mp3s and iTunes is leveling distribution for independent bands. And, given the investment that is being made in new e-reader models, I would say we are on the front edge of a wave that may never recede for self-published authors.

  • Harry Potter Heads To School Libraries Digitally

    Pottermore, the online experience and home of the Harry Potter eBooks created by J.K. Rowling and partnered by Sony, announced today it has entered into an exclusive worldwide eBook and digital audiobook distribution agreement with OverDrive for public and school libraries. Under the terms of the agreement, OverDrive, a leading global distributor of eBooks and digital audiobooks, will manage hosting and digital fulfillment for libraries for the Harry Potter collection of eBooks and digital audiobooks in English and more than 20 other languages to OverDrive’s growing network of over 18,000 public and school libraries worldwide.

    Through local public library and school catalogues, OverDrive’s digital book lending service will promote to new and returning readers a popular way to access the official Harry Potter eBooks and digital audiobooks. The Harry Potter series has sold over 400 million copies worldwide. With this agreement, the seven books in the series will be available in digital formats for the first time for lending from public and school libraries.

    Charlie Redmayne, Pottermore CEO, said:

    “We are keen to support public and school libraries, and OverDrive, as one of the leading suppliers in this market, provides us with a global network that helps us achieve this, as well as encouraging the discovery of these amazing books across the world.”

    OverDrive CEO and President Steve Potash said:

    “J.K. Rowling’s Harry Potter is a once-a-lifetime phenomenon and has been an extremely significant catalyst for reading and literacy for current and future generations. We are honoured to bring this beloved storytelling experience digitally to public and school libraries worldwide.”

    In keeping with Harry Potter’s international appeal, OverDrive will provide schools and libraries the ability to offer the official eBooks and digital audiobooks in many different languages — initially English, French, Italian, German and Spanish — with more languages to follow.

    In addition to the eBook collection, the complete digital audiobooks will be made available for digital borrowing in the MP3 file format on listening devices such as computers, smartphones and iPod®.

    To find a participating library or school in the OverDrive network, visit http://search.overdrive.com.

    For more on Pottermore itself, watch this:

  • New Nook Tablet Set For February 22nd Launch?

    Despite making hardware of comparable quality and price for years, Barnes & Noble’s line of Nook readers and tablets has been hard-pressed to compete with Amazon’s Kindle devices. Though the original Nook Tablet launched only 2 days behind the Kindle Fire, it has not been seen as a significant competitor. Part of the reason for this has been the Nook Tablet’s somewhat higher price tag ($249 as opposed to $199).

    Now it looks like Barnes and Noble might be preparing to release a tablet that competes with the Kindle Fire more directly. There were hints last month that a new model of Nook Tablet was in the works. Now The Verge has gotten hold of a document from Walmart detailing the February 22nd launch of a Nook Tablet with half the storage – 8 GB, to match the Kindle Fire. The document (picture below, courtesy of The Verge), provides instructions to Walmart for what to do with the shipments that are apparently already arriving at their stores. The tablet is apparently scheduled to launch at 12:01 on Wednesday, February 22, with shipments apparently reaching stores via truck starting on Saturday the 18th, and running through Tuesday the 21st. There is no pricing information on the Nook Tablet, but given the halved internal storage and the need to compete directly with the Kindle Fire, we can probably expect a drop of at least $50, and probably more.

    Nook Tablet Coming Soon To Walmart?

    With just two days until the (apparent) launch, look for more information to be available very soon. No formal announcement has been made – or even hinted at – by Barnes & Noble, but we should expect one on either Tuesday or Wednesday.

    What do you think? Would you buy a Nook Tablet instead of a Kindle Fire if the price is right? Sound off in the comments.

  • Kindle Touch Gets Handwriting Recognition

    The Kindle Touch just got a new functionality – handwriting recognition.

    Puzzazz, a developer of puzzle games for Kindle devices, announced their new game yesterday. Sudoku Unbound #3 for the Kindle Touch introduces TouchWrite technology for the device that allows users to write with their fingers.

    The product page explains the new tech:

    Place your finger anywhere in the box you want to enter the number and write it as large as you want. TouchWrite will read your writing and enter the number for you.

    It’s worth noting that the game is available for all Kindle devices, but it’s most interesting for Kindle Touch for the aforementioned use of handwriting recognition software. This is the first time the technology has appeared on the Kindle Touch.

    Speaking to Geek Wire, Puzzazz founder Roy Leban said that they built the TouchWrite technology as a way to improve the use of e-books.

    Leban was silent, however, when asked if Amazon was going to implement their software across all apps for the Kindle Touch. They will, however, implement the software into all future puzzle e-books from Puzzazz.

    If Amazon was smart, and I know they are, they would license this software for all future apps on the Kindle Touch. Being able to directly interact and write notes on an e-book on a Kindle Touch would definitely help Amazon further compete with Apple’s iPad.

  • eBooks Are Beginning to Replace Textbooks in the Classroom

    Technology has forced changes in the role of textbooks in education, and e-books have been gaining popularity, along with standard textbook rental. Companies like Chegg rent both standard textbooks and e-textbooks, and Amazon’s Kindle Store claims students can save up to 80%, as well as designate the length of the rental.

    Two of the most popular e-book readers are the Apple iPad, and the Amazon Kindle Fire. The Amazon Kindle Store offers over 1 million publications for use on both platforms, and Apple’s iBooks 2 allows students to engage in interactive material, as well as take assessments.

    Advances in the online classroom have harbored a more student-oriented approach to learning, as tablet devices can be linked to projectors in the classroom setting. Also, all formerly written materials can be more easily accessed, making note-taking more efficient, and digital library research functions make student publishing easier.

    With these advances comes the concern of content ownerships, copyrights and plagiarism, and it is important for educational institutions to properly manage online ethics, without getting in the way of the classroom learning process. More information can be found at Online Universities.

    The Digital Classroom
    Via: Accredited Online Universities Guide

  • Amazon Commercial Takes Shots At iPad’s Price

    Amazon Commercial Takes Shots At iPad’s Price

    Amazon has released a new commercial for their Kindle line of e-readers and tablets. The first part of the commercial focuses on Amazon’s standard response in the Kindle vs. iPad debate: the Kindle is easier to read in the sun.

    Then the focus shifts to the price. When the dorky iPad owner points out to the hot, bikini-clad Kindle owner that he can watch movies, she points out that her kids can do the same on their Kindle Fires, and that her Kindle and their Kindle Fires together cost less than his iPad.

    Whatever your feelings about the iPad, the Kindle Fire, Amazon has taken pretty much the only option open to them from a marketing standpoint. A recent survey showed that the iPad ranked much higher than the Kindle Fire in terms of customer satisfaction. In fact, the feature Kindle Fire owners said they were most satisfied with about their device was its price tag.

    What do you think of the commercial? Check it out below and let us know in the comments.

  • Kindle: Best Selling Product Across Europe and US

    Kindle E-readers and tablets nearly tripled in sales this past holiday when compared to the 2010 Christmas season. Amazon’s total sales for the final quarter were at a staggering $17.3 billion.

    Amazon founder and CEO Jeff Bezos:

    “We are grateful to the millions of customers who purchased the Kindle Fire and Kindle e-reader devices this holiday season, making Kindle our bestselling product across both the U.S. and Europe,”

    Amazon doesn’t report exactly how many devices they sold but industry analyst approximate that nearly six million Kindle products moved this season.

    Wednesday Amazon launched their new e-books lending library which is just what it sounds like, a lending library. Members of Amazon Prime, which costs about $80 a year, can borrow one free e-book a month.

    Jeff Bezos comments on the new service:

    “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 ebook store offers such a service,”

    Currently there are over 5,000 books available from the library. Amazon is hoping the introduction of the new service will drive Kindle sales up even further and contribute to the overall popularity of e-books.

  • Amazon Q4 Earnings Report Released, Net Income Plummets, Kindle Unit Sales Up 177%

    Amazon just released its earnings report for the fourth quarter. This includes an increase in net sales of 35% to $17.43 billion. Still, net income decreased 58% to $177 million for the quarter.

    Kindle unit sales (including Kindles and Kindle Fires) increased 177% over the same period last year.

    “We are grateful to the millions of customers who purchased the Kindle Fire and Kindle e-reader devices this holiday season, making Kindle our bestselling product across both the U.S. and Europe,” said CEO Jeff Bezos.

    Below is the release in its entirety:

    SEATTLE–(BUSINESS WIRE)–Jan. 31, 2012– Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its fourth quarter ended December 31, 2011.

    Operating cash flow increased 12% to $3.90 billion for the trailing twelve months, compared with $3.50 billion for the trailing twelve months ended December 31, 2010. Free cash flow decreased 17% to $2.09 billion for the trailing twelve months, compared with $2.52 billion for the trailing twelve months ended December 31, 2010.

    Common shares outstanding plus shares underlying stock-based awards totaled 468 million on December 31, 2011, compared with 465 million a year ago.

    Net sales increased 35% to $17.43 billion in the fourth quarter, compared with $12.95 billion in fourth quarter 2010. Excluding the $101 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 34% compared with fourth quarter 2010.

    Operating income was $260 million in the fourth quarter, compared with $474 million in fourth quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $5 million.

    Net income decreased 58% to $177 million in the fourth quarter, or $0.38 per diluted share, compared with net income of $416 million, or $0.91 per diluted share, in fourth quarter 2010.

    “We are grateful to the millions of customers who purchased the Kindle Fire and Kindle e-reader devices this holiday season, making Kindle our bestselling product across both the U.S. and Europe,” said Jeff Bezos, founder and CEO of Amazon.com. “Our millions of third-party sellers had a tremendous holiday season with 65% unit growth and now represent 36% of total units sold.”

    Full Year 2011

    Net sales increased 41% to $48.08 billion, compared with $34.20 billion in 2010. Excluding the $1.09 billionfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales would have grown 37% compared with 2010.

    Operating income decreased 39% to $862 million, compared with $1.41 billion in 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the year on operating income was $53 million.

    Net income decreased 45% to $631 million in 2011, or $1.37 per diluted share, compared with net income of$1.15 billion, or $2.53 per diluted share, in 2010.

    Highlights

    • During the nine-week holiday period ending December 31, 2011, Kindle unit sales, including both the Kindle Fire and e-reader devices, increased 177% over the same period last year.
    • Kindle Fire is the #1 bestselling, most gifted, and most wished for product across the millions of items available on Amazon.com since its introduction 17 weeks ago.
    • Amazon launched Kindle Stores at Amazon.it and Amazon.es. Kindle moved to the top of the bestseller list on launch day in both countries and held the top spot this holiday season. The new Kindle was also the bestselling product on Amazon.co.uk, Amazon.de and Amazon.fr.
    • Amazon.com announced the Kindle Owners’ Lending Library, a benefit of Prime membership that offers over 80,000 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.
    • Kindle Direct Publishing (KDP) announced KDP Select, an annual fund of at least $6 million dedicated to independent authors and publishers who participate in the Kindle Owners’ Lending Library. In December alone, customers borrowed 295,000 KDP Select titles, and KDP Select has helped grow the total library selection of books by over 16X.
    • Amazon continued to expand its catalog of title offerings for Prime Instant Video, announcing licensing agreements with Twentieth Century Fox Television Distribution, which added the popular FOX and FX television shows Glee and Sons of Anarchy, and Disney-ABC Television, which added popular television shows including Lost and Grey’s Anatomy. These deals bring the total number of Prime Instant Videos to more than 13,000 movies and TV shows from partners such as CBS, Fox, NBCUniversal, Sony, Warner Bros., PBS, ABC-Disney and many more.
    • The number of videos purchased or rented from Amazon Instant Video and the number of Amazon Instant Video customers both more than doubled year-over-year in the fourth quarter. In addition, the number of Prime Instant Video streams increased nearly 300% in the fourth quarter compared to the third quarter.
    • Amazon Appstore for Android customers nearly tripled in the fourth quarter compared to the third quarter. In addition, customers downloaded more apps from the Amazon Appstore during the fourth quarter than they had during all previous quarters combined.
    • North America segment sales, representing the Company’s U.S. and Canadian sites, were $9.90 billion, up 37% from fourth quarter 2010.
    • International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese, Italian and Spanish sites, were $7.53 billion, up 31% from fourth quarter 2010. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 29%.
    • Worldwide Media sales grew 15% to $6.01 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 14%.
    • Worldwide Electronics and Other General Merchandise sales grew 48% to $10.91 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 47%.
    • Amazon Web Services (AWS) announced the launch of its new South America (Sao Paulo) Region and U.S. West (Oregon) Region, bringing the total to eight geographic regions worldwide to which the company has deployed its global cloud computing services.
    • AWS announced the launch of Amazon DynamoDB, a fully managed NoSQL database service that provides extremely fast and predictable performance with seamless scalability. With a few clicks in the AWS Management Console, customers can launch a new Amazon DynamoDB database table, scale up or down their request capacity for the table without downtime or performance degradation, and gain visibility into resource utilization and performance metrics.
    • AWS announced that customers can now run their Microsoft Windows Server applications within the AWS Free Usage Tier – a program designed to help new AWS customers get started in the cloud. Developers and businesses with Windows Server applications can take advantage of 750 hours of Amazon Elastic Compute Cloud (Amazon EC2) Micro Instance usage per month, at no charge for a one-year period.

    Financial Guidance

    The following forward-looking statements reflect Amazon.com’s expectations as of January 31, 2012. 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.

    First Quarter 2012 Guidance

    • Net sales are expected to be between $12.0 billion and $13.4 billion, or to grow between 22% and 36% compared with first quarter 2011.
    • Operating income (loss) is expected to be between $(200) million and $100 million, or between 162% decline and 69% decline compared with first quarter 2011.
    • 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.

    About Amazon.com

    Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. The new latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch is a new addition to the Kindle family with 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 3G is the top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV shows, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.

    Amazon and its affiliates operate websites… As used herein, “Amazon.com,” “we,” “our” and similar terms includeAmazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

    AMAZON.COM, INC.
    Consolidated Statements of Cash Flows
    (in millions)
    (unaudited)
    Three Months Ended Twelve Months Ended
    December 31, December 31,
    2011 2010 2011 2010
    CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 2,823 $ 1,539 $ 3,777 $ 3,444
    OPERATING ACTIVITIES:
    Net income 177 416 631 1,152
    Adjustments to reconcile net income to net cash from operating activities:
    Depreciation of fixed assets, including internal-use software and website development, and other amortization 359 170 1,083 568
    Stock-based compensation 159 120 557 424
    Other operating expense (income), net 43 29 154 106
    Losses (gains) on sales of marketable securities, net (4 ) (2 )
    Other expense (income), net (16 ) (17 ) (56 ) (79 )
    Deferred income taxes 67 48 136 4
    Excess tax benefits from stock-based compensation (1 ) (23 ) (62 ) (259 )
    Changes in operating assets and liabilities:
    Inventories (1,260 ) (693 ) (1,777 ) (1,019 )
    Accounts receivable, net and other (1,077 ) (531 ) (866 ) (295 )
    Accounts payable 4,684 3,442 2,997 2,373
    Accrued expenses and other 1,076 596 1,067 740
    Additions to unearned revenue 358 186 1,064 687
    Amortization of previously unearned revenue (300 ) (263 ) (1,021 ) (905 )
    Net cash provided by (used in) operating activities 4,269 3,480 3,903 3,495
    INVESTING ACTIVITIES:
    Purchases of fixed assets, including internal-use software and website development (550 ) (328 ) (1,811 ) (979 )
    Acquisitions, net of cash acquired, and other (49 ) (271 ) (705 ) (352 )
    Sales and maturities of marketable securities and other investments 912 1,112 6,843 4,250
    Purchases of marketable securities and other investments (1,782 ) (1,728 ) (6,257 ) (6,279 )
    Net cash provided by (used in) investing activities (1,469 ) (1,215 ) (1,930 ) (3,360 )
    FINANCING ACTIVITIES:
    Excess tax benefits from stock-based compensation 1 23 62 259
    Common stock repurchased (277 ) (277 )
    Proceeds from long-term debt and other 47 43 177 143
    Repayments of long-term debt, capital lease, and finance lease obligations (104 ) (100 ) (444 ) (221 )
    Net cash provided by (used in) financing activities (333 ) (34 ) (482 ) 181
    Foreign-currency effect on cash and cash equivalents (21 ) 7 1 17
    Net increase (decrease) in cash and cash equivalents 2,446 2,238 1,492 333
    CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,269 $ 3,777 $ 5,269 $ 3,777
    SUPPLEMENTAL CASH FLOW INFORMATION:
    Cash paid for interest on long term debt $ 4 $ 3 $ 14 $ 11
    Cash paid for income taxes (net of refunds) 15 13 33 75
    Fixed assets acquired under capital leases 187 122 753 405
    Fixed assets acquired under build-to-suit leases 39 14 259 172
    AMAZON.COM, INC.
    Consolidated Statements of Operations
    (in millions, except per share data)
    (unaudited)
    Three Months Ended Twelve Months Ended
    December 31, December 31,
    2011 2010 2011 2010
    Product sales $ 15,309 $ 11,729 $ 42,000 $ 30,792
    Services sales 2,122 1,219 6,077 3,412
    Net sales 17,431 12,948 48,077 34,204
    Operating expenses (1):
    Cost of sales 13,830 10,317 37,288 26,561
    Fulfillment 1,659 1,090 4,576 2,898
    Marketing 593 376 1,630 1,029
    Technology and content 862 519 2,909 1,734
    General and administrative 184 143 658 470
    Other operating expense (income), net 43 29 154 106
    Total operating expenses 17,171 12,474 47,215 32,798
    Income from operations 260 474 862 1,406
    Interest income 14 14 61 51
    Interest expense (20 ) (11 ) (65 ) (39 )
    Other income (expense), net 19 29 76 79
    Total non-operating income (expense) 13 32 72 91
    Income before income taxes 273 506 934 1,497
    Provision for income taxes (86 ) (84 ) (291 ) (352 )
    Equity-method investment activity, net of tax (10 ) (6 ) (12 ) 7
    Net income $ 177 $ 416 $ 631 $ 1,152
    Basic earnings per share $ 0.39 $ 0.93 $ 1.39 $ 2.58
    Diluted earnings per share $ 0.38 $ 0.91 $ 1.37 $ 2.53
    Weighted average shares used in computation of earnings per share:
    Basic 455 450 453 447
    Diluted 462 458 461 456
    (1) Includes stock-based compensation as follows:
    Fulfillment $ 42 $ 25 $ 133 $ 90
    Marketing 12 7 39 27
    Technology and content 80 63 292 223
    General and administrative 25 24 93 84
    AMAZON.COM, INC.
    Segment Information
    (in millions)
    (unaudited)
    Three Months Ended Twelve Months Ended
    December 31, December 31,
    2011 2010 2011 2010
    North America
    Net sales $ 9,902 $ 7,211 $ 26,705 $ 18,707
    Segment operating expenses (1) 9,617 6,916 25,772 17,752
    Segment operating income $ 285 $ 295 $ 933 $ 955
    International
    Net sales $ 7,529 $ 5,737 $ 21,372 $ 15,497
    Segment operating expenses (1) 7,352 5,410 20,732 14,516
    Segment operating income $ 177 $ 327 $ 640 $ 981
    Consolidated
    Net sales $ 17,431 $ 12,948 $ 48,077 $ 34,204
    Segment operating expenses 16,969 12,326 46,504 32,268
    Segment operating income 462 622 1,573 1,936
    Stock-based compensation (159 ) (119 ) (557 ) (424 )
    Other operating income (expense), net (43 ) (29 ) (154 ) (106 )
    Income from operations 260 474 862 1,406
    Total non-operating income (expense) 13 32 72 91
    Provision for income taxes (86 ) (84 ) (291 ) (352 )
    Equity-method investment activity, net of tax (10 ) (6 ) (12 ) 7
    Net income $ 177 $ 416 $ 631 $ 1,152
    Segment Highlights:
    Y/Y net sales growth:
    North America 37 % 45 % 43 % 46 %
    International 31 26 38 33
    Consolidated 35 36 41 40
    Y/Y segment operating income growth (decline):
    North America (4 ) % 6 % (2 ) % 35 %
    International (46 ) 3 (35 ) 14
    Consolidated (26 ) 4 (19 ) 23
    Net sales mix:
    North America 57 % 56 % 56 % 55 %
    International 43 44 44 45
    100 % 100 % 100 % 100 %
    _______________________  
    (1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments
    AMAZON.COM, INC.
    Supplemental Net Sales Information
    (in millions)
    (unaudited)
    Three Months Ended Twelve Months Ended
    December 31, December 31,
    2011 2010 2011 2010
    North America
    Media $ 2,562 $ 2,370 $ 7,959 $ 6,881
    Electronics and other general merchandise 6,881 4,558 17,315 10,998
    Other (1) 459 283 1,431 828
    Total North America $ 9,902 $ 7,211 $ 26,705 $ 18,707
    International
    Media $ 3,447 $ 2,865 $ 9,820 $ 8,007
    Electronics and other general merchandise 4,032 2,834 11,397 7,365
    Other (1) 50 38 155 125
    Total International $ 7,529 $ 5,737 $ 21,372 $ 15,497
    Consolidated
    Media $ 6,009 $ 5,235 $ 17,779 $ 14,888
    Electronics and other general merchandise 10,913 7,392 28,712 18,363
    Other (1) 509 321 1,586 953
    Total Consolidated $ 17,431 $ 12,948 $ 48,077 $ 34,204
    Y/Y Net Sales Growth:
    North America:
    Media 8 % 13 % 16 % 15 %
    Electronics and other general merchandise 51 71 57 74
    Other 62 45 73 50
    Total North America 37 45 43 46
    International:
    Media 20 % 11 % 23 % 18 %
    Electronics and other general merchandise 42 46 55 54
    Other 32 6 24 22
    Total International 31 26 38 33
    Consolidated:
    Media 15 % 12 % 19 % 17 %
    Electronics and other general merchandise 48 60 56 66
    Other 58 39 66 46
    Total Consolidated 35 36 41 40
    Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
    International:
    Media 18 % 13 % 16 % 18 %
    Electronics and other general merchandise 41 50 47 57
    Other 31 10 18 24
    Total International 29 29 31 34
    Consolidated:
    Media 14 % 13 % 16 % 16 %
    Electronics and other general merchandise 47 62 53 67
    Other 58 40 66 46
    Total Consolidated 34 37 37 40
    Consolidated Net Sales Mix:
    Media 34 % 40 % 37 % 43 %
    Electronics and other general merchandise 63 57 60 54
    Other 3 3 3 3
    100 % 100 % 100 % 100 %
    ____________________________
    (1) Includes non-retail activities, such as AWS, miscellaneous marketing and promotional agreements, other seller sites, and co-branded credit card agreements
    AMAZON.COM, INC.
    Consolidated Balance Sheets
    (in millions, except per share data)
    December 31, December 31,
    2011 2010
    ASSETS (unaudited)
    Current assets:
    Cash and cash equivalents $ 5,269 $ 3,777
    Marketable securities 4,307 4,985
    Inventories 4,992 3,202
    Accounts receivable, net and other 2,571 1,587
    Deferred tax assets 351 196
    Total current assets 17,490 13,747
    Fixed assets, net 4,417 2,414
    Deferred tax assets 28 22
    Goodwill 1,955 1,349
    Other assets 1,388 1,265
    Total assets $ 25,278 $ 18,797
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Current liabilities:
    Accounts payable $ 11,145 $ 8,051
    Accrued expenses and other 3,751 2,321
    Total current liabilities 14,896 10,372
    Long-term liabilities 2,625 1,561
    Commitments and contingencies
    Stockholders’ equity:
    Preferred stock, $0.01 par value:
    Authorized shares — 500
    Issued and outstanding shares — none
    Common stock, $0.01 par value:
    Authorized shares — 5,000
    Issued shares — 473 and 468
    Outstanding shares — 455 and 451 5 5
    Treasury stock, at cost (877 ) (600 )
    Additional paid-in capital 6,990 6,325
    Accumulated other comprehensive loss (316 ) (190 )
    Retained earnings 1,955 1,324
    Total stockholders’ equity 7,757 6,864
    Total liabilities and stockholders’ equity $ 25,278 $ 18,797
    AMAZON.COM, INC.
    Supplemental Financial Information and Business Metrics
    (in millions, except per share data)
    (unaudited)
    Y/Y %
    Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Change
    Cash Flows and Shares
    Operating cash flow — trailing twelve months (TTM) $ 3,495 $ 3,033 $ 3,205 $ 3,114 $ 3,903 12 %
    Purchases of fixed assets (incl. internal-use software & website development) — TTM $ 979 $ 1,138 $ 1,374 $ 1,589 $ 1,811 85 %
    Free cash flow (operating cash flow less purchases of fixed assets) — TTM $ 2,516 $ 1,895 $ 1,831 $ 1,525 $ 2,092 (17 %)
    Free cash flow — TTM Y/Y growth (14 %) (18 %) (8 %) (17 %) (17 %) N/A
    Invested capital (1) $ 7,380 $ 7,931 $ 8,551 $ 9,147 $ 9,680 31 %
    Return on invested capital (2) 34 % 24 % 21 % 17 % 22 % N/A
    Common shares and stock-based awards outstanding 465 466 468 469 468 1 %
    Common shares outstanding 451 452 454 455 455 1 %
    Stock-based awards outstanding 15 14 15 14 14 (7 %)
    Stock-based awards outstanding — % of common shares outstanding 3.2 % 3.1 % 3.2 % 3.2 % 3.0 % N/A
    Results of Operations
    Worldwide (WW) net sales $ 12,948 $ 9,857 $ 9,913 $ 10,876 $ 17,431 35 %
    WW net sales — Y/Y growth, excluding F/X 37 % 36 % 44 % 39 % 34 % N/A
    WW net sales — TTM $ 34,204 $ 36,931 $ 40,278 $ 43,594 $ 48,077 41 %
    WW net sales — TTM Y/Y growth, excluding F/X 40 % 39 % 39 % 39 % 37 % N/A
    Operating income $ 474 $ 322 $ 201 $ 79 $ 260 (45 %)
    Operating income — Y/Y growth, excluding F/X 3 % (20 )% (36 %) (77 %) (48 %) N/A
    Operating margin — % of WW net sales 3.7 % 3.3 % 2.0 % 0.7 % 1.5 % N/A
    Operating income — TTM $ 1,406 $ 1,334 $ 1,265 $ 1,076 $ 862 (39 %)
    Operating income — TTM Y/Y growth, excluding F/X 27 % 7 % (7 %) (25 %) (44 %) N/A
    Operating margin — TTM % of WW net sales 4.1 % 3.6 % 3.1 % 2.5 % 1.8 % N/A
    Net income $ 416 $ 201 $ 191 $ 63 $ 177 (58 %)
    Net income per diluted share $ 0.91 $ 0.44 $ 0.41 $ 0.14 $ 0.38 (58 %)
    Net income — TTM $ 1,152 $ 1,054 $ 1,038 $ 871 $ 631 (45 %)
    Net income per diluted share — TTM $ 2.53 $ 2.30 $ 2.26 $ 1.89 $ 1.37 (46 %)
    Segments
    North America Segment:
    Net sales $ 7,211 $ 5,465 $ 5,406 $ 5,932 $ 9,902 37 %
    Net sales — Y/Y growth, excluding F/X 45 % 45 % 50 % 44 % 37 % N/A
    Net sales — TTM $ 18,707 $ 20,392 $ 22,208 $ 24,014 $ 26,705 43 %
    Operating income $ 295 $ 290 $ 214 $ 144 $ 285 (4 %)
    Operating margin — % of North America net sales 4.1 % 5.3 % 4.0 % 2.4 % 2.9 % N/A
    Operating income — TTM $ 955 $ 972 $ 986 $ 943 $ 933 (2 %)
    Operating income — TTM Y/Y growth, excluding F/X 35 % 17 % 9 % 1 % (2 %) N/A
    Operating margin — TTM % of North America net sales 5.1 % 4.8 % 4.4 % 3.9 % 3.5 % N/A
    International Segment:
    Net sales $ 5,737 $ 4,392 $ 4,507 $ 4,944 $ 7,529 31 %
    Net sales — Y/Y growth, excluding F/X 29 % 27 % 36 % 33 % 29 % N/A
    Net sales — TTM $ 15,497 $ 16,539 $ 18,070 $ 19,580 $ 21,372 38 %
    Net sales — TTM % of WW net sales 45 % 45 % 45 % 45 % 44 % N/A
    Operating income $ 327 $ 175 $ 172 $ 116 $ 177 (46 %)
    Operating margin — % of International net sales 5.7 % 4.0 % 3.8 % 2.4 % 2.4 % N/A
    Operating income — TTM $ 981 $ 922 $ 888 $ 790 $ 640 (35 %)
    Operating income — TTM Y/Y growth, excluding F/X 20 % 4 % (7 %) (23 %) (41 %) N/A
    Operating margin — TTM % of International net sales 6.3 % 5.6 % 4.9 % 4.0 % 3.0 % N/A
    Consolidated Segments:
    Operating expenses (3) $ 12,326 $ 9,392 $ 9,527 $ 10,616 $ 16,969 38 %
    Operating expenses — TTM (3) $ 32,268 $ 35,037 $ 38,404 $ 41,860 $ 46,504 44 %
    Operating income $ 622 $ 465 $ 386 $ 260 $ 462 (26 %)
    Operating margin — % of Consolidated sales 4.8 % 4.7 % 3.9 % 2.4 % 2.7 % N/A
    Operating income — TTM $ 1,936 $ 1,894 $ 1,874 $ 1,734 $ 1,573 (19 %)
    Operating income — TTM Y/Y growth, excluding F/X 25 % 10 % 1 % (11 %) (21 %) N/A
    Operating margin — TTM % of Consolidated net sales 5.7 % 5.1 % 4.7 % 4.0 % 3.3 % N/A
    AMAZON.COM, INC.
    Supplemental Financial Information and Business Metrics
    (in millions, except inventory turnover, accounts payable days and employee data)
    (unaudited)
    Y/Y %
    Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Change
    Supplemental
    Supplemental North America Segment Net Sales:
    Media $ 2,370 $ 1,885 $ 1,585 $ 1,927 $ 2,562 8 %
    Media — Y/Y growth, excluding F/X 13 % 18 % 19 % 21 % 8 % N/A
    Media — TTM $ 6,881 $ 7,170 $ 7,430 $ 7,767 $ 7,959 16 %
    Electronics and other general merchandise $ 4,558 $ 3,303 $ 3,496 $ 3,635 $ 6,881 51 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 71 % 63 % 67 % 56 % 51 % N/A
    Electronics and other general merchandise — TTM $ 10,998 $ 12,277 $ 13,683 $ 14,992 $ 17,315 57 %
    Electronics and other general merchandise — TTM % of North America net sales 59 % 60 % 62 % 62 % 65 % N/A
    Other $ 283 $ 277 $ 325 $ 370 $ 459 62 %
    Other — TTM $ 828 $ 945 $ 1,095 $ 1,255 $ 1,431 73 %
    Supplemental International Segment Net Sales:
    Media $ 2,865 $ 2,073 $ 2,075 $ 2,226 $ 3,447 20 %
    Media — Y/Y growth, excluding F/X 13 % 9 % 20 % 17 % 18 % N/A
    Media — TTM $ 8,007 $ 8,247 $ 8,772 $ 9,238 $ 9,820 23 %
    Electronics and other general merchandise $ 2,834 $ 2,285 $ 2,398 $ 2,681 $ 4,032 42 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 50 % 49 % 53 % 51 % 41 % N/A
    Electronics and other general merchandise — TTM $ 7,365 $ 8,162 $ 9,162 $ 10,199 $ 11,397 55 %
    Electronics and other general merchandise — TTM % of International net sales 48 % 49 % 51 % 52 % 53 % N/A
    Other $ 38 $ 34 $ 34 $ 37 $ 50 32 %
    Other — TTM $ 125 $ 130 $ 136 $ 143 $ 155 24 %
    Supplemental Worldwide Net Sales:
    Media $ 5,235 $ 3,958 $ 3,660 $ 4,153 $ 6,009 15 %
    Media — Y/Y growth, excluding F/X 13 % 13 % 20 % 19 % 14 % N/A
    Media — TTM $ 14,888 $ 15,417 $ 16,202 $ 17,005 $ 17,779 19 %
    Electronics and other general merchandise $ 7,392 $ 5,588 $ 5,894 $ 6,316 $ 10,913 48 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 62 % 57 % 62 % 54 % 47 % N/A
    Electronics and other general merchandise — TTM $ 18,363 $ 20,439 $ 22,845 $ 25,191 $ 28,712 56 %
    Electronics and other general merchandise — TTM % of WW net sales 54 % 55 % 57 % 58 % 60 % N/A
    Other $ 321 $ 311 $ 359 $ 407 $ 509 58 %
    Other — TTM $ 953 $ 1,075 $ 1,231 $ 1,398 $ 1,586 66 %
    Balance Sheet
    Cash and marketable securities $ 8,762 $ 6,881 $ 6,355 $ 6,326 $ 9,576 9 %
    Inventory, net — ending $ 3,202 $ 2,888 $ 3,229 $ 3,770 $ 4,992 56 %
    Inventory turnover, average — TTM 11.4 11.6 11.3 10.8 10.3 (10 %)
    Fixed assets, net $ 2,414 $ 2,902 $ 3,470 $ 3,999 $ 4,417 83 %
    Accounts payable — ending $ 8,051 $ 5,540 $ 5,721 $ 6,552 $ 11,145 38 %
    Accounts payable days — ending 72 66 69 72 74 3 %
    Other
    WW shipping revenue $ 437 $ 330 $ 331 $ 360 $ 531 21 %
    WW shipping costs $ 999 $ 786 $ 820 $ 918 $ 1,466 47 %
    WW net shipping costs $ 562 $ 456 $ 489 $ 558 $ 935 66 %
    WW net shipping costs — % of WW net sales 4.3 % 4.6 % 4.9 % 5.1 % 5.4 % N/A
    Employees (full-time and part-time; excludes contractors & temporary personnel) 33,700 37,900 43,200 51,300 56,200 67 %
    (1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
    (2) TTM Free Cash Flow divided by Invested Capital.
    (3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.

    Amazon.com, Inc.

    Certain Definitions

    Customer Accounts

    • References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer places an order or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

    Seller Accounts

    • References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

    Registered Developers

    • References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.

    Units

    • References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon domains worldwide…

      – as well as Amazon-owned items sold through non-Amazon domains. Units sold are paid units and do not include units associated with certain acquisitions, rental businesses, web services or advertising businesses, or Amazon gift certificates.

     

    Source: Amazon.com,

  • Barnes & Noble Preparing New Nook

    Barnes & Noble Preparing New Nook

    In its bid to stay competitive with Amazon, Barnes and Noble appears to be preparing a new addition to their line of Nook readers and tablets. According to a recent report, the company’s engineers are preparing the new device for a release sometime this spring.

    There are almost no details on the device, which was mentioned in a piece in the New York Times on the company’s bid to keep itself alive as the last nationwide brick-and-mortar book retailer. In all likelihood it is either an update to the Nook Tablet or a new e-ink reader, possibly featuring a color display like the one featured at CES earlier this month.

    The financial collapse of Borders this year left Barnes and Noble standing alone – though not necessarily triumphant – as the last of the great brick-and-mortar bookstores. The company has remained competitive thanks in large part to its entrance into the e-reader market with the Nook line of devices. The original Nook launched a few months after Amazon released their second generation Kindle e-reader. It featured an e-ink book display and a touch screen navigation interface, seen by many as superior to the Kindle’s physical keyboard. Later they beat Amazon into the tablet market by a considerable margin with the launch of the Nook Color and then the Nook Tablet. Despite generally positive reviews and a significant head start, the Nook Tablet has not managed the same level of popularity as Amazon’s own tablet, the Kindle Fire, which released late last year.

    It will be interesting to see what Barnes and Noble has in store with its next Nook device. Stay tuned for more details as they become available.