Amazon – Problems In Store For Kindle Authors?

Amazon UK Kindle purchases doubled in 2011, but profits slumped in the final three months. The company cited investment in new products and expansion as the reason for the drop. Worldwide Kindle sales were up 177% over the Christmas period of 2 months.

Analysts opine that Amazon does not make much money from selling ebook readers, but profits on selling books for the Kindles.

Amazon’s sales were up 35% to $17.4billion (£11billion) in the final quarter of 2011, but its net income fell 58% to $177million (£112.4million).

Its shares, listed on the U.S. Nasdaq, are down 8 per cent in pre-open trading. They have been impacted by Amazon’s statement that an operating loss in the current quarter was expected.

The Kindle wasAmazon’s top-selling product in 2011 as a whole. Sales of e-books in the UK were nearly five times higher than a year ago.

I’m not sure what all this means for Kindle authors, but it may well put a squeeze on margins. If you do write for Kindle, remember that the market for other reader formats is at least as big – the Apple iBookstore is on the up and up, and expanding the market.