Kindle is Amazon’s New Cash Cow Item

Every company regardless of industry has their own cash cow product that propel their organization to the next level. Nike have their Jordan sneakers, Microsoft has windows, Google has their search engine, Hasbro has the Monopoly board game and the list goes on.

Amazon is a company built by Jeff Bezos named on the Amazon river which means they would carry everything on the planet. They launched their company on books but later on ventured on every possible item they can sell off the internet. Most companies start with a cash cow item and diversify but with Amazon it is the opposite. They have diversified from the beginning and have only started seeing a product that could provide a massive cash flow to bring their business to new heights.

Amazon Kindle. I have previously written an article about the Amazon Kindle and the stiff competition they are facing ahead of them (Kindle for Windows 7) but it seems that Amazon is in a very strong position not to be challenged given their revenues from this product.

Amazon has had a big 3rd quarter where their profits have jumped 62 percent that have brought in $5.45 billion dollars in sales in that quarter alone. The revenue shows a 28 percent increase compared to their 3rd quarter profits in 2008 with net income of $199 million dollars. The stocks of Amazon has risen by an eye popping 15 percent to $170.08 dollars.

Kindle is now Amazon’s best selling item on both unit sales and dollars across all product categories and not only on their electronics section. Aside from that, Kindle is their most wished for and most gifted product as announced by CEO Jeff Bezos.

The price of the Amazon Kindle 3G has been reduced to $259 dollars which was a big discount to their previous almost $400 dollar price tag. Accompanied by Kindle for Windows 7 means Amazon should expect increasing sales from their cash cow item.

Image from Amazon and edited by me.