Amazon's New Kindles Sell Out in Just Five Days If you're looking to buy one of Amazon's (AMZN) brand-new Kindle e-readers, you're going to have to wait a bit longer. Just five days after announcing a new $189 Kindle 3G model and a $139 WiFi only edition, both devices have sold out, and anyone who pre-orders now won't get one in the mail until Sept. 4, a week after the original ship date.

Both the 3G and WiFi ordering pages now come with this new note: "Due to strong customer demand, Kindle is temporarily sold out. Shipments will be prioritized on a first-come, first-serve basis." Naturally, the e-retailer didn't give an indication of how many devices on pre-order it took to reach that sellout milestone, but the fact that it happened so quickly does demonstrate how the word "Kindle" has become increasingly synonymous with e-books.

Amazon's competitors, however, are hardly down for the count. Barnes & Noble (BKS) announced last week that many of its brick-and-mortar stores would feature 1,000-square foot "full service" boutiques showing off its own e-reader, the Nook, whose 3G and WiFi models are priced at $199 and $149, respectively. Barnes & Noble has a lot riding on its digital book business and has been spending money accordingly, and it appears to be paying off in the form of 33% market share as of late July, according to Digitimes Research. Meanwhile, the presence of the competing iBooks platform for Apple's (AAPL) iPad and iPhone hasn't prevented Amazon from increasing its own e-book sales count on those devices either.

While keeping the Kindle's price artificially low and losing money per unit is all part of Amazon's greater business plan, The Wall Street Journal's Martin Peers wondered if this tactic "risks scaring those who don't trust the company's commitment to the bottom line." But Amazon's moves bolster a deeper commitment from its customers, who will continue to buy e-books in such a way that allows books like Stieg Larsson's Millennium Trilogy to sell over a million Kindle editions. The company's recent actions are also warning shots, signaling to its competitors that any move they make -- such as dropping e-reader prices below $100 -- Amazon will match, and then better.

So to the anxious and the nervous: Sit back, relax and enjoy the continuing digital book developments. There will be far more of them, and there's still room for some late-game surprises.

Increase your money and finance knowledge from home

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Income Investing

Grow your nest-egg.

View Course »

Add a Comment

*0 / 3000 Character Maximum

3 Comments

Filter by:
sparrowhall1

You're right that digital readers are on the top of shopper's wishlists, and that they're shaping our relationship with books, but I think the real value is going to come from the content we'll be seeing on these readers in the future. The digital medium allows for so much more than a completely text-reliant narrative. I think we're going to be seeing a surge in transmedia storytelling - expanding a story beyond a simple e-book and into a more immersive experience. That is going to mean huge sales for any of the artists, publishers or entertainment studios that make transmedia a major focus. I talk about this in the article "The Fate of Barnes & Noble and the Way We'll Read Tomorrow." http://www.sparrowhall.com/blog/the-fate-of-barnes-noble-and-the-way-well-read-tomorrow/

August 10 2010 at 11:51 AM Report abuse rate up rate down Reply
CARLA

I just got the $189 3G kindle. I got it less then two weeks ago and then they sold out. I am so glad I got it when I did after looking at them over and over. I love it. LOVE LOVE LOVE it.
Put your name on the list its is terrific.

August 07 2010 at 8:39 AM Report abuse rate up rate down Reply
charpist5

I purchased my Kindle 2 in May of 2009. I didn't even know what e-Readers were....but I happened to see the add on Amazon (where I shop for other things) and read about it. Ordered one instantly. I read a LOT. Always did. I am planning on purchasing the new Kindle because of its smaller size, once I see what real people say about it (the Kindle discussion boards are great for this.) I read my Kindle 2 every day. I guess I am speaking to the "customer loyalty" issue of the Kindle and Amazon. I have no reason to go anywhere else for an eReader, as I just want to READ BOOKS. I have other devices to do the other stuff. Will I sell my Kindle 2? Not on your LIFE. It will merely become my "first Kindle."

August 02 2010 at 12:39 PM Report abuse rate up rate down Reply