Sunday, 18 December 2011

Amazon Kindle selling over 1 million a week

Amazon.com Inc said it is selling more than a million Kindle devices a week, an unusual revelation largest Internet company that comes in the wake of some negative reviews of its new Kindle tablet of Fire.

Amazon said customers buy "more than" a million Kindle a week. This level of sales has been caused by three weeks, said in a statement.

The sales figures include the tablet Kindle fire and all versions of the Kindle electronic reader. The Company does not break out sales figures of the tablet of fire alone.

However, Amazon Kindle executive David Limp said fire sales increased week over week for each of the last three weeks.

Amazon said it had previously sold "millions" of Kindle, but the company has never given a number of sales a week, according to a spokeswoman.

The revelation comes after a series of negative feedback from Kindle fires which focused on issues such as the slow response of the user interface and web browser, the need for greater privacy and child settings, and lack of external volume control.

"The press release was very bullish and a clear response to the few high-profile negative stories," said Ben Schachter, an analyst at Macquarie.

Amazon shares rose 1.1 percent to $ 182.18 in mid-afternoon Thursday. The stock fell nearly $ 170, its lowest level since March, on Wednesday.

Recent reviews and articles have been "exaggerated" in part because it often compares the $ 199 Kindle fire iPad from Apple Inc, which starts at $ 499, the analyst said.

"That's like comparing a $ 20,000 car with a $ 50,000 car," said Schachter. "These reviews by some damage because people read them. Will and the iPad? No."

Despite the negative coverage, Schachter is sticking to its forecast of around five million fire Kindle sales in the fourth quarter.

Amazon said this week it plans a software update for the Kindle Fire in the coming weeks that will "improve performance, touch navigation, and give customers the option to choose which items display in the carousel."

Carousel refers to the windows that appear on the main screen Kindle Fire shows the applications that ran last. Some users have complained that the statement of what happened to the device is a privacy issue.

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