Here's Amazon's Real Moneymaker

The guest on this week's nationally syndicated Motley Fool Money radio show is Ron Adner, an award-winning professor and author of the new book The Wide Lens: A New Strategy for Innovation. Sony created the first e-reader, a full year before Amazon.com came out with the Kindle. So how has Amazon succeeded when Sony had the first-mover advantage? In this audio segment, Adner finds that although Sony had the better product, Amazon had the better overall solution for consumers. Likewise, Adner argues that while the Kindle device is succeeding, the Kindle app is far more important to Amazon's long-term battle with competitors.

Barnes & Noble has been overtaken by Amazon. Not surprisingly, Amazon is one of the companies featured in The Motley Fool's brand new report, "3 Stocks That Will Help You Retire Rich." The report describes the savings habits you need to build long-term wealth and analyzes three stocks to help build a smarter retirement portfolio. You can get instant access to this report simply by clicking here -- it's free.

Chris Hill owns shares of Amazon.com. The Motley Fool owns shares of Amazon.com and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Amazon.com and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On February 25, 2012, at 2:22 PM, nateHoffelder wrote:

    "Sony created the first e-reader, a full year before Amazon.com came out with the Kindle. "

    Nope. Sony didn't invent the first ereader, and the PRS-500 wasn't even Sony's first ereader. Please consider doing some basic fact checking before posting tripe like this.

  • Report this Comment On February 25, 2012, at 4:29 PM, chip825 wrote:

    Why is it that all the talking heads on Wall Street and now the "Fool" keep plugging Amazon?

    I don't deny that Amazon is an amazing company, however, get rich on it is a LOOOOONG stretch.

    It's not like Amazon is a new company?

    With a margin of less than 2% and a P/E north of 130, maybe, if I was planning on retiring by say 2075. It might be worth what the stock is trading for today.

    It's only a matter of time when some big house has the courage to put a sell on AMZN and this stock will drop 50-100 points in a matter of days.

  • Report this Comment On February 25, 2012, at 4:40 PM, TMFWizard wrote:

    Nate, first thanks for your comment and welcome to the Fool community. It's not every new member who posts a comment on his/her first day so kudos, m'man.

    I should have erred on the side of caution by writing that Sony created ITS first e-reader before Amazon came out with the Kindle.

    I'm referring, of course, to the PRS-500 you mentioned. I'm not counting the Sony Librie, which was only sold in Japan, or the Data Discman, which is pretty different from the basic Kindle/Nook/PRS-500 model we know and love today.

    But hey, I tend to write shorter articles intended to give the reader an overview of what they'll hear in an interview or watch in a video. I'm certainly not an expert on e-readers like Len Edgerly or someone of his caliber. By the way, I interviewed him in 2010. Definitely someone to follow if you're interested in the whole e-reader industry, which it appears you are. Just search "Len Edgerly" in the search box in the top-right corner of this page and I'm sure you can easily find the interview I did.

    Cheers,

    C

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