Amazon Kindle sales heat up, stock jumps

Mon Nov 28, 2011 4:05pm EST

A reporter tries out a new $79 Kindle tablet at a news conference during the launch of Amazon's new tablets in New York, September 28, 2011. REUTERS/Shannon Stapleton

A reporter tries out a new $79 Kindle tablet at a news conference during the launch of Amazon's new tablets in New York, September 28, 2011.

Credit: Reuters/Shannon Stapleton

(Reuters) - Amazon.com Inc said on Monday it saw a surge in sales of its Kindle devices, helped by its new Kindle Fire tablet, on the crucial "Black Friday" shopping day after Thanksgiving.

Consumers bought four times as many Kindles on Black Friday as they did on the same day last year, when the company sold only e-readers, the largest Internet retailer reported.

The $199 Fire was the best-selling product on Amazon.com on Black Friday and it has been the top seller over the eight weeks since the tablet was launched, the company added.

"We're seeing a lot of customers buying multiple Kindles - one for themselves and others as gifts - we expect this trend to continue on Cyber Monday and through the holiday shopping season," said Dave Limp, vice president, Amazon Kindle.

Amazon shares rose 6.2 percent to $193.75 in afternoon trading on Monday, while the tech-heavy Nasdaq Composite index rose 3.6 percent.

The new Kindle Fire is a crucial part of Amazon's effort to sell more digital products such as e-books, apps, video games, music and movies. The company is selling the tablet in more than 16,000 retail stores to try to get the device into as many hands as possible.

IN-STORE SALES

The Kindle Fire was the best-selling tablet in Target Corp stores on Black Friday, Nik Nayar, vice president of merchandising at Target, said in a statement.

Target sells several tablets, including the market-leading iPad from Apple Inc. Over Black Friday, Target offered a $75 gift card when customers bought an iPad 2 with 3G.

Goldman Sachs analysts visited stores run by Best Buy Co Inc and other retailers in recent days and found that Kindle products were "very sharply outselling" Nook devices from bookseller Barnes & Noble Inc.

At stores run by Barnes & Noble, interest in the Nook was "robust," but the Goldman analysts said extra distribution to other retail stores was having less impact than expected.

"Now Amazon has a more competitive suite of hardware, its hardware share should increase, and its ebook share should follow," the analysts wrote in a note to investors on Monday.

Barnes & Noble shares rose 7.6 percent to $17.28 in Monday afternoon trading.

(Reporting by Alistair Barr; editing by Dave Zimmerman and Andre Grenon)

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Comments (3)
emessage wrote:
Wait til people found out the annoyance of reading a book thru a small screen, the annual charge and the lack of contents, apps & the joke of the block…it sure will backfire Amazon.

Nov 28, 2011 2:28pm EST  --  Report as abuse
LouannO wrote:
Spoke to someone who owns a Kindle Fire. You can increase the font size, I would have to wear glasses to read a book anyway, also most libraries have FREE Kindle books available to lend for 2 weeks. I have Netflix, so I do not need the Prime membership. The only game I would even consider would be angry birds.

Nov 28, 2011 5:41pm EST  --  Report as abuse
If it’s not a magical, life-changing, life-affirming, beautiful, social-status-bolstering Apple iPad, why would you want it?

These inferior tablets are not what consumers need or want. Apple has all the products we can’t live without and crave, so why isn’t the government stepping in to stop these confusing choices from harming consumers?

Nov 28, 2011 11:39pm EST  --  Report as abuse
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