) has recently come up with a plan to expand its children's
publishing division. The company has already introduced two
imprints "Two Lions" and "Skyscape" for kids between 8 and 12
In 2011, Amazon acquired the U.S. division of Marshall
Cavendish publishing house, and got access to 450 children's
books published by them. The primary reason behind this
acquisition was to gain access to Marshall's clientele, who
mostly are children, for its eBook reader- Kindle Fire.
The new prints may bolster its FreeTime Unlimited, which is
particularly aimed at kids aged 3 to 8 years. This 'easy-to-use'
feature offers kids a broad range of content such as movies,
books, apps and games. They can also view shows from
Walt Disney Co.
), Sesame Street, Nickelodeon and DC Comics.
Barnes & Noble
), as a part of its marketing strategy, is trying to attract
children toward its eBook reader Nook. Barnes & Noble is
offering 1,042 titles, including 36 "Read and Play" interactive
titles and 404 "Read to Me" titles.
The tablet market is very competitive and Amazon cannot afford
to miss out on any opportunity to grow its still-small customer
base. Amazon's prime competitor,
), is already strengthening its position by launching 20,000
educational apps in the App Store with 1.5 million iPads being
used in schools.
According to IDC, 27.8 million tablets were shipped worldwide
in the third quarter of fiscal 2012. Apple shipped 14.0 million
iPads and led the market with 50.4% share. Samsung was next
in line with 18.4% market share. Amazon ranked third as it
shipped 2.5 million units and held 9.0% market share.
Thus, Amazon's Kindle Fire has a long way to go. It is yet to
be seen if Amazon's strategy to target this segment of the market
yields improved results. Further, strategic measures, including
the addition and upgrade of features and the targeting of key
markets can generate higher revenues for Amazon.
Amazon's third-quarter revenue was $13.81 billion, up 7.6%
sequentially and 26.9% from the year-ago quarter. This was better
than management's expectations and more or less in line with the
Zacks Consensus Estimate. Excluding the unfavorable currency
impact, revenues increased 30.0% year over year.
Amazon has a Zacks Rank #3 (Hold).
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