Kindle eReaders Help Amazon Become $100 Billion Company

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Jeff Bezos would like to thank the Amazon Kindle eReader. Amazon recently obtained a financial capitalization record which only one company in the history of the Northwest United States has ever been able to achieve. The Seattle-based company which is the largest online retailer in the world has hit the magic $100 billion capitalization mark which very few companies ever see in their history.

To put this in perspective, Microsoft is the only other Northwest American company to reach $100 billion in capitalization. Caffeine kingpin Starbucks has a market capitalization of $29.2 billion, and Boeing Airlines has produced $47.7 billion in market value.

Sliding over the $100 billion mark occurred just last week immediately following Netflix’s announcement that they were breaking their company into two separate entities. Netflix is a direct on-demand video competitor with Amazon. This saw a quick spike in Amazon’s share price, and they have held the $100 billion capitalization ever since. Amazon’s Kindle marketing machine and digital content library, as well as the physical Kindle eReaders, are leading the financial capitalization charge for Amazon.

The Amazon Kindle ereader was introduced in 2007, and has owned at least 40% eReader market share ever since. By offering loss leader pricing on their eReading devices, and making the bulk of their profits on high margin, low retail price digital content, Amazon has created a very efficient profit model in their Kindle marketing machine. No longer does Amazon have to be content with a miniscule percent of each transaction made on its retail website, something it still does better than anyone else online.

In a time of economic turmoil when most companies are slashing jobs and cutting spending, Amazon added 15,000 employees in the past year and saw their revenues leap a jaw-dropping 51%, thanks in large part to the Amazon Kindle and its digital library.

Constantly keeping the pressure on their competitors, Amazon recently announced a drop in retail price from an already market low $139 for its Kindle Wi-Fi eReader to $114 if the Kindle buyer would accept special money-saving offers delivered to them on their home screen and screen savers only.

Less than 30 days after the Amazon Kindle Special Offers launch, it became the best selling device on all of Amazon, including millions of retail products, not just in comparison to other Kindle models. It is this type of marketing that Amazon does so well, and when they use it in conjuncture with the best-selling Kindle eReader, they make life very hard on their competitors, and very sweet for their shareholders.

Learn more about this market leading gadget and the different models available in our comprehensive Amazon Kindle eReader Review.

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