Amazon Launches Kindle Touch 3G To Expand Tablet Reach

by Trefis Team
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Amazon
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Amazon (NASDAQ:AMZN) launched new versions of its Kindle e-reader in late 2011. It launched its first tablet – the Kindle Fire – to take on Apple‘s (NASDAQ:AAPL) iPad, Barnes & Noble’s Nook and other Google (NASDAQ:GOOG) Android tablets in the market. It also launched an upgraded version of the original Kindle as well as the new Kindle Touch, a touch-based variant of the Kindle. Amazon competes with traditional book publishers, Apple’s iBooks, and Google Books. 

See our full analysis for Amazon’s stock here

The company initially launched the new Kindles only in a few markets, including the U.S., but has now has started rolling out its Kindle devices globally. This week, it announced that it will be launching the Kindle Touch 3G in more than 175 countries. [1] The new device is now available for pre-order and will start shipping from April 27. The Kindle Touch 3G will support additional languages, offer free 3G connectivity to download books anywhere, offer Wi-Fi support and several other features to improve the user’s book reading experience.

Though the Kindle hardware business is a low-margin business for Amazon, accounting for less than 3% of its overall value, we expect increased Kindle sales to drive Amazon’s core business – selling e-books and other multimedia content online, which accounts for nearly 23% of its total value.

We have a $205 Trefis price estimate for Amazon, which stands 2% above its market price.

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Notes:
  1. Amazon Kindle Touch 3G Now for Sale to Customers in over 175 Countries, Press Release []
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