Amazon.com Tech Trends; High-Tech Factoids From Leading Online Electronics Retailer Amazon.com
SEATTLE — July 25, 2002 — Amazon.com (Nasdaq:AMZN):
World-Class Audio Experience Now Available at Affordable Prices
— True high-end audio performance used to be accessible only to those audiophiles and discriminating listeners for whom price was no object. Red Rose Music, founded by audio luminary and music lover Mark Levinson, is out to change all that. Previously available only at select high-end audio stores, Red Rose Music products, including compact hardwood speakers and state-of-the-art amplifiers, are now available for surprisingly affordable prices ($1,200 to $2,000) exclusively at Amazon.com's new Red Rose Music Store (http://www.amazon.com/redrosemusic).
— "Red Rose Music is helping to revolutionize high-end audio," says Amazon.com's vice president of Electronics, Frank Sadowski. "Using newly discovered materials and technologies, combined with truly innovative designs, the company offers dramatically enhanced music reproduction. Amazon.com is always looking for ways to bring our customers the broadest possible selection of products. With our Red Rose Music Store, customers can shop for and enjoy high-end audio products at an affordable price."
— In Amazon.com's Red Rose Music Store, customers can discover and buy:
1. Red Rose Music Spirit Speakers (Pair, $1,200) — Wood-veneer-finished bookshelf speakers with hand-formed ribbon tweeters. http://www.amazon.com/exec/obidos/ASIN/B000068V2A/
2. Red Rose Music Spirit Integrated Amplifier ($1,200) — A compact, integrated 35-watt-per-channel amplifier with low noise, low distortion and high bandwidth. http://www.amazon.com/exec/obidos/ASIN/B000068V29/
3. Red Rose Music Spirit System ($2,000) — A convenient, affordable bundle of the Spirit monitors and amplifier. http://www.amazon.com/exec/obidos/ASIN/B000068V2C/
Motorola Revs Up Cell Phone Sales
— Today's cell phone marketplace looks as crowded and competitive as the start of the Tour de France. In this crowded pack, Motorola has been making dramatic strides, with the company's V60 cell phone setting a blazing sales pace at Amazon.com. In fact, Motorola has overtaken Nokia as the No. 1 phone manufacturer in Amazon.com's Cell Phones & Service Store, with the V60 accounting for half of all phones sold. Motorola's share of cell phone sales in the store before the V60 was 14 percent of all units sold, and now it's 55 percent.
Sony Clie Models Have Firm Grasp on Handheld/PDA Market
— Amazon.com sales reflect Sony's aggressive marketing and growing presence in the handheld/PDA marketplace. Sony had four of the top 10 bestselling handhelds on the site this week, including the Clie PEG-T615C, Clie PEG-S360, Clie PEG-NR70V and Clie PEG-T665C. The others in the top 10 were the Palm m515 and m130 color handhelds, the Palm m105 handheld, the Handspring Treo 90, the Compaq iPAQ H3955 color pocket PC and the Toshiba e310 pocket PC.
Apple iPod Sales Bloom with First Windows-Compatible Models
— Fast-growing sales of iPod digital music players (which accounted for more than 24 percent of Amazon.com's MP3 player/jukebox sales this past June) have put a shine on Apple's bottom line, and the company has announced an expansion of the iPod line with six new models.
— The new Apple iPods include 5 GB, 10 GB and 20 GB Mac-only models, plus Apple's first-ever Windows-compatible iPods (in 5 GB, 10 GB and 20 GB models). Suggested retail prices are $299, $399 and $499 for the 5, 10 and 20 GB models, respectively (prices apply to both Mac and Windows devices).
— All six new Apple iPods are currently available for pre-order at Amazon.com and should be in stock in two to four weeks.
Gamers Turn Up Sales of Multimedia Speakers, Transforming Computers into Entertainment Centers
— Computers are increasingly becoming "total entertainment centers." Sales of multimedia speakers at Amazon.com this month are double what they were last year. Gamers are buying top-of-the-line computer speakers to get maximum realism and sonic impact from their gaming software. Many are also buying surround-sound satellite/subwoofer systems to deliver a true home theater experience while watching DVD or CDV movies on their computers.
— Yamaha's TSS-1 six-piece computer speakers ($159.99) which incorporates both Dolby Digital and DTS surround-sound processors, is consistently a top seller at Amazon.com. Other high-end top sellers include the new Klipsch Promedia speaker systems (prices range from $179.99 to $399.99 for three to six pieces), which are Dolby Digital/DTS compatible and THX certified for top performance.
Demand for More Memory Grows with Proliferation of Memory-Dependent Devices
— Does your PDA, MP3 player or digital camera have a bad memory? Proliferation of these types of electronic products has created growing demand for additional memory storage devices. Four out of the 10 top-selling products this week in Amazon.com's Electronics Store were memory cards. Top sellers include the Viking CF128M 128 MB and CF256M 256 MB Compact Flash memory cards, the SanDisk 128 MB Secure Digital memory card and the SanDisk 128 MB Memory Stick memory card.
— To help customers find compatible memory cards for their electronic devices, Amazon.com and Viking Components offer the Memory Finder, a search engine on the site that surfaces compatible memory for various digital cameras, PDAs, MP3 players, photo printers and other products (http://www.amazon.com/memory).
It's No Mystery: Backyard Baseball 2003 and Nancy Drew Software Titles Hit Home Runs
— Old-timers will be pleased that America's favorite pastime doesn't seem to have lost any luster with today's kids. Amazon.com's top seller in Children's Software since its release on June 18 has been Humongous Entertainment's Backyard Baseball 2003. The game lets kids pick players from either Backyard Kids or pros, choose the field and position the teams. Kids also get to direct all the action on the field, track player and team stats and earn pitching and batting power-ups to light up the scoreboard.
— And challenging the conventional wisdom that boys are the biggest consumers of computer games is sales of Her Interactive's Nancy Drew: Secret of the Scarlet Hand and Nancy Drew: Stay Tuned for Danger, which are the No. 4 and 5 top-selling Children's Software titles at Amazon.com, respectively. Kids "become" Nancy and navigate the program in first-person viewpoint, exploring, searching for clues and solving puzzles. Amazon.com is consistently in the top 10 of retailers who sell the most Nancy Drew titles.
Editorial Note:
Based on purchasing information from millions of customers, Amazon.com's Top Sellers and Movers & Shakers lists are the perfect editorial resource for any industry, business or lifestyle story. And because many of its lists are updated throughout the day, Amazon.com can supply the most relevant information to virtually any writer on a deadline. Here are a few of the resources available to the media:
— Amazon.com Top Sellers lists track online sales in real time and can be found at www.amazon.com/top-sellers. In addition to an overall Electronics Hot 100 Top Sellers list, the Electronics Store features individual lists for hot categories like Home Theater, Handhelds and DVD Players.
— Amazon.com Movers & Shakers lists, located at www.amazon.com/movers-and-shakers, feature the biggest gainers in sales rank over the past 24 hours. The lists are organized by product type: electronics, software, books, music, videos, DVDs, toys and games, video games, kitchen items and housewares, outdoor living products and tools and hardware.
— Amazon.com's expert editorial staff is available to discuss the latest products, sales and trends in categories from digital cameras and DVD players to video games, computers and software. Additionally, editors can pull customized information to supplement stories, including sales statistics, regional buying patterns, top seller lists for any product category and comparisons of sales over time.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, significant amount of indebtedness, competition, strategic alliances and business combinations, seasonality, potential fluctuations in operating results and rate of growth, foreign currency exchange rates, management of potential growth, system interruption, international expansion, consumer trends, fulfillment center optimization, inventory, limited operating history, government regulation and taxation, fraud and Amazon.com Payments, and new business areas. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec. 31, 2001, and all subsequent filings.
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