Kindle movement towards emerging markets
After giving some serious competition to Apple Inc. (NASDAQ:AAPL)‘s iPad in the U.S., Amazon.com, Inc. (NASDAQ:AMZN) is planning to enhance its footprint in emerging markets, like India, by launching “Kindle” products on the marketplace. Sales of Kindle Fire HD 7-inch, Fire HD 8.9-inch, and Kindle Paperwhite tablets will start from June 27, 2013.
Its Fire HD will give access to more than 1.9 million applications, games, and nearly 0.33 million books which are exclusively available on the Kindle store. The products will be priced from $270 to $372. Kindle Paperwhite, a fifth generation device, will be available in a Wi-Fi and 3G Wi-Fi version, at a price of $186 and $237 respectively.
Amazon.com, Inc. (NASDAQ:AMZN) Web Services, or AWS, held 26% share of the U.S. e-commerce market in 2012. U.S. online retail sales will capture the market share of physical stores, and will grow by 13% to $262 billion in 2013 at a CAGR of 10% in the next five years. This growth will continue as physical stores change their strategy and invest in web-based businesses.
The company is also planning to increase its presence in the Asia-Pacific region, which is approximately one-third of the global e-commerce business. The e-commerce business in this region increased by 33% to $332 billion in 2012, and is expected to grow by 30% to $433 billion in 2013. Amazon.com, Inc. (NASDAQ:AMZN) reported revenue of $798 million in the quarter ending in March 2013, and is expecting to generate revenue of $3.8 billion by the end of this year.
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Conclusion
Gilead, with the European approval for its new drugs, used in the treatment of HIV and HCV patients, generates good future growth opportunities.
Siemens AG (NYSE:SI)’ new contract of $1.33 billion from Brazilian government and plan of exiting from the NSN is expected to generate higher revenue and better cash flow.
Amazon.com, Inc. (NASDAQ:AMZN), with its new Kindle Fire HD, is expected to capture the majority of the tablet market in India. And, with the growth of online retail business, its AWS service will generate opportunities for its future growth.
Due to strong growth strategies being implemented by these companies, a buy is recommended.
Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Gilead Sciences, Inc. (NASDAQ:GILD). The Motley Fool owns shares of Amazon.com, Inc. (NASDAQ:AMZN).
The article Three Companies With Solid EPS Growth originally appeared on Fool.com.
Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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