Kindle's 90% Market Share About to Fall

Amazon's Kindle currently controls about 90 percent of ebook sales, but that's about to change. Credit Suisse analyst Spencer Wang expects that the Kindle's sales market share will drop to about 35 percent over the next five years thanks to Apple's iPad and the expected launch of an ebook reader from Google, according to the Wall Street Journal.

"Going forward, we can envision a scenario where Apple, Amazon, and Google eventually split the market. Therefore, we expect Amazon's share of eBooks business to fall from 90 percent currently to about 35 percent over the next five years," Mr. Wang said.

Despite that gloomy outlook, Mr. Wang expects Amazon can still see the Kindle holding its own at least for a while. "Near term, we suspect that the iPad and the new eBook agency pricing model, which requires that Amazon increase retail prices to be more consistent with Apple's pricing, will provide Kindle with the most market share headwind," he said.

Apple introduced the iPad during a special media event at the end of January. The handled device sports a tablet form factor, 9.7-inch multi-touch display, Wi-Fi and Bluetooth support, 3G in some models, the ability to play music and video, an ebook reader, and more.