The world's largest online retailer,
Amazon.com Inc. (
recently announced the launch of its Kindle ebook store in China,
enabling Chinese customers to read ebooks using Android and iOS
While the company is not selling Kindle e-readers in China
yet, Chinese customers can buy Kindles from other countries.
Thus, this launch will not only provide Chinese customers with a
wide selection of books, but will help Amazon tap a promising
The China Kindle Store will offer 24,479 e-books, including
new releases and best sellers from a number of Chinese authors.
The store will have its usual mix of free public domain titles
along with books priced in the range of few yuan (less than a
U.S. dollar) to around $7.
Amazon's Kindle devices are expected to hit China soon as they
have already been authorized by the country's radio regulator.
However, the company has not yet disclosed any plans about when
the Kindle device would be sold in China.
In recent months, Amazon has been aggressively moving into
international e-book markets.
) and Kobo are also making significant effortsto enter important
Earlier this month, Amazon launched its Kindle Store in Brazil
and also announced the upcoming commercial release of the Kindle
e-reader in the South American country. In late August, Amazon
launched a Kindle ebook store in India. It also opened Appstores
in certain parts of Europe, including the U.K., Germany, France,
Italy and Spain, along with the introduction of the Kindle Fire
China is estimated to be the second-largest market for
e-readers in the world and Amazon has been operating in China for
some time and is now entering the ebook market.
Though the Chinese e-reader market is already dominated by
local players such as Hanwang Technology's e-readers and Shanda
Cloudary's Bambook, we believe China's huge market size, Amazon's
strong reputation and credibility, and the low pricing of the
Kindle will attract Chinese book lovers. This will likely boost
Amazon's e-books and other content sales.
There is a good possibility of Amazon capturing a significant
share of the Chinese market within the next five years; following
which the company is expected to generate an additional several
billion dollars a year in revenue.
Amazon is one of the leading players in the extremely
fast-growing retail ecommerce market and its strength lies in its
huge scale of offerings, its broad reach and platform approach.
We believe Amazon's strong balance sheet helps the company to
capitalize on investment opportunities and strategic
acquisitions, thereby further improving growth visibility.
However, heavy investments in its Kindle tablet computers, new
warehouse and data centers may weigh on its near-term
Amazon currently retains a Zacks #3 Rank (Hold). Currently,
Amazon's competitors (whether direct or indirect) are
), which retains a Zacks #2 Rank (Buy), and
Barnes & Noble, Inc
), both carrying a Zacks #3 Rank (Hold).
APPLE INC (AAPL): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis
BARNES & NOBLE (BKS): Free Stock Analysis
EBAY INC (EBAY): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis
To read this article on Zacks.com click here.