Without actual data to refer to analysts are mostly left to speculate or hunt out leaks, regarding the performance of the kindle business concept. This speculation/explanation from all things D about how Kindle might manage to be making good business in the face of a decreasing share of the pie – that arguably they created.
Take another look at this chart from Mahaney’s October report, which plots the Kindle’s price drop over the years. By all accounts, it looks like you could flip this thing over, and it would give you a good sense of Kindle sales:
So what about the data that shows Apple’s iPad, which lets you read books in color and do a whole lot more, eating into the Kindle’s market share?
It may be correct, but also not relevant: Shrinking market share doesn’t mean you can’t have booming sales, and my hunch is that people who buy $139 Kindles end up buying more e-book titles per capita than the average iPad owner.
Also worth noting that Amazon doesn’t necessarily lose when someone buys an iPad and not a Kindle. The bookseller’s read-everywhere platform means iPad owners can read Kindle titles on their machines.