The world's largest online retailer,
) has recently announced the availability of its high-definition
(HD) 7-inch Kindle Fire tablet and Kindle e-readers in China.
The 16 GB and 32 GB versions of the 7-inch Kindle Fire HD are
going for ¥1,499 (USD $244) and ¥1799 (USD $293), respectively
while the Paperwhite e-reader is priced at ¥849 (USD $138).
In recent months, Amazon has been aggressively pursuing
opportunities in China. Last month, the company launched its
Appstore in China, offering Chinese customers access to Amazon's
broad selection of Android mobile applications (apps). The
company also offered cloud storage services and launched its
Kindle e-book store in China last year.
The Kindle Store offered 25,000 e-books at the time of its
launch last December, including new releases and bestsellers from
a number of Chinese authors. Now it offers 47,000 e-book titles
in local languages. Though the e-reader will be available online,
the company has inked distribution deals with Suning and Tesco
Shi to increase the physical availability of the device.
We believe that despite the strong competition and various
regulatory hurdles in China, the availability of Kindle devices
in the country will provide customers a wide selection of Kindle
tablets and books and help Amazon tap a promising market.
There is a possibility that Amazon might capture a significant
share of the Chinese market within the next five years; following
which should help it generate an additional several billion
dollars a year in revenues. China's huge market size and Amazon's
reputation and credibility present a strong opportunity. This
will likely boost Amazon's e-books, tablets and other content
However, heavy investments in its Kindle tablet computers, new
warehouses and data centers may weigh on its near-term
Amazon shares currently retain a Zacks Rank #3 (Hold). Other
stocks that have been performing well and are worth a look
), all carrying a Zacks Rank #1 (Strong Buy).
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