Amazon thinks it could quickly dominate Brazilâ€™s e-book market with the Kindle, boosting sales of electronic books to 15 per cent of the publishing market in the first year of operations from 0.5 per cent currently, the industry source said.
Amazon hopes to grab 90 per cent of Brazilâ€™s e-book market, the source added, in part because many Brazilians already download content from its site using readers they bought abroad.
Brazilians account for 1 per cent of the global traffic to Amazonâ€™s websites, according to the companyâ€™s information firm Alexa.
That compares to 2.3 per cent in Britain or 1.3 in Germany, where Amazon already has operations.
To gain market share quickly in Brazil, Amazon will likely sell its most basic Kindle model at a subsidized price of under 500 reais ($239 U.S.), three times more expensive than in the U.S. but still bellow rival products, the source said.
That strategy – prioritizing market share over profit – is one that Amazon has used elsewhere, prompting critics to question the companyâ€™s ability to make money in the long run.
Amazon has already signed contracts with around 30 Brazilian publishers and is rushing to build a portfolio of some 10,000 electronic books ahead of the end-year shopping season, the source familiar with the companyâ€™s plan said.
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