Amazon.com in Talk to Bring Kindle to China
KUNSHAN, Oct 27, 2011 (Menafn - SinoCast Daily Business Beat via COMTEX) --Amazon.com Inc. AMZN Global Vice President Marc Onetto today points out when receiving an interview that the company is still in active negotiation with the Chinese government regulators in terms of the introduction of Kindle and Kindle Fire.
According to Marc Onetto, Amazon.com will not consider cooperation with other Chinese local content solution providers. Talking of recent stock price fluctuation, he says that it will not affect the company's investment in global business and the Chinese market.
Marc Onetto unveils that China is the fastest growing market for Amazon.com around the globe, where the company's operating revenues are rising by 80% and sales value is only next to that of the US.
However, Marc Onetto admits that the selling price of single products is not so high in China, where the market situation is different from that of the US.
Today, Amazon.com put its operation center in Kunshan City, Jiangsu Province into use, the tenth as well as the largest and most advanced one in China. Amazon.com discloses that the operation center covers an area of 12 hectares. By far, the company's operation centers in China total 40 hectares, which is only next to the ones in the US.
Although Kindle and Kindle Fire are popular in the US, they are facing problems such as government approval and content copyright in China. Talking of the introduction of these products into China, Marc Onetto says that Amazon.com is still in talk with Chinese government regulators and copyright providers. Since the talks are not controlled by Amazon.com, their timetable is uncertain.
Marc Onetto further points out that Amazon.com has no plan to form cooperation with Chinese e-book and tablet computer makers.
Marc Onetto notes that Amazon.com wants to launch simpler and more user-friendly products in China. The products will too complex if there are too many participants. Amazon.com cares more about user demand besides its foray into China.
Kindle is very convenient in terms of sharing, multiple networks and bookstore management, which is included in the talks with Chinese government regulators. Amazon.com hopes that Chinese customers would be able to enjoy the convenience.
Yesterday, Amazon.com revealed that it was likely to suffer losses of up to USD 200 million in the fourth quarter because of increasing costs. Moreover, its third-quarter profits, which are 42% lower than expectations, also disappoint investors.
As a result, the stock price of Amazon.com lowered 12.66% or USD 28.75 to close at USD 198.4 per share. Analysts believe that the fiercer competition between Amazon.com and Apple Inc. AAPL erodes the market expectations for profits of this quarter. Therefore, the market cap of Amazon.com shrinks USD 13 billion.
Marc Onetto deems that the stock price fluctuation is temporary and will not affect the long-term investment plans of Amazon.com in China.
Marc Onetto says that Amazon.com is not challenging Apple and its investment targets meeting customer demand. Currently, Amazon.com has rich cash reserves. Its investment aims to retain sound future development, which will win understanding from investors.
(USD 1 = CNY 6.36)
Source: www.sohu.com (October 27, 2011)
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