Susquehanna cuts Amazon rating; cites Kindle issues, huge Apple iPad eBook market share gains

invisibleSHIELD case for iPad“Susquehanna Financial Group analyst Marianne Wolk this morning cut her rating on to Neutral from Positve, citing increasing competitive pressure on the Kindle e-reader,” Eric Savitz reports for Barron’s.

“Wolk notes that Apple has seen strong early momentum in the e-Book space with the Apple iPad, taking share from Amazon among the five publishers make e-books available on the iPad, taking 22% share with with those publishers in the first two months of launch,” Savitz reports. “And she notes that more publishers will start selling on the iPad over the next several months, reducing Amazon’s selection advantage.”

Savitz reports, “AMZN this morning is down $1.88, or 1.6%, to $119.12.”

Full article here.

MacDailyNews Take: Bloodbath. Read all about it on your iPad. In vibrant color.


  1. Don’t care how much they reduce the price of this thing, it’s still a one-trick pony. That’s the gist of it. One trick. Just one.

    Of course, if that’s all someone WANTS, then it’s probably a great little toy. I mean, who would really wan to be distracted witht all those pesky movies, and tunes, and websites, and emails, and apps, and . . . and . . . and . . . .

    Low tech is always better for some people, huh? (Insert sarcasm here.)

  2. No need to dis Amazon if Kindle hardware is not selling well. There are reader apps for Kindle format books, and readers from other sellers, as well. I’d love it if Apple could license whatever encryption the other readers need and come up with a single iBook shelf to store everything. Amazon won’t die if they don’t sell any more Kindles.

  3. Even if everything the analyst says about the Kindle, ebooks and DTB’s turns out to be true (Which I personally doubt), the impact on Amazon’s revenue would be minimal. She seems to think Amazon is a one trick pony (Derives a significant amount of earinings from the Kindle et al.) It’s like saying Apple depends on the AppleTv for a significant portion of its revenue. I suspect she has other reasons to dis Amazon.

  4. If all you want it for is as a reader, the Kindle is great. The best part is the battery life you get out of it, especially if you’re traveling. You don’t have to recharge for weeks.

  5. I don’t see why the main target for ebooks is novels, surely the big push should be for reference books – cookery, gardening, diy books and the like. Maybe they’re more suited to dedicated apps to allow more features (I don’t know the limits of ebooks), but surely the ibooks store should somehow incorporate them since they are books after all. They could be listed in your library but then open as regular apps. I bought my mother a gardening book recently and frankly it would be perfect for being on the iPad as it’s the kind of book you want to have loads of bookmarks in, want to annotate etc, far more than you would a novel say.

  6. Does Wolk think that Amazon’s only product
    Is Kindle and e-Books? Did she buy short
    and tried to manipulate the stock price?

    I have iBook and Kindle apps on my iPad.
    iBook is slightly better than Kindle in actual
    usage in my opinion. However the Kindle
    store/Amazon is miles ahead of the iBook

  7. i don’t think the iPad needs to “kill” anything—let alone the kindle. kindle seems great for a dedicated reader. if you need nothing else, the size and weight see like a good thing to me—if they add color all the better for them.

    it’s only when amazon’s practices and ipad “book-blocking” occur that make me want the thing to circle the bowl.

  8. Where the heck are you traveling that you won’t run into an electrical outlet “for weeks”? The Amazonian rain forest? Mount Everest? The Gobi Desert?

    Dang, but it seems to me that if you’re THAT far from civilization for that length of time, an eReader might just be the LAST thing on your mind.

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