Thanksgiving brought record online retail sales for the holiday, with spending up 39.3 percent over Thanksgiving 2010. And today, IBM Coremetrics data shows a 24.3 percent growth in online sales on Black Friday compared to the same period last year.
Mobile traffic on Black Friday was 14.3 percent of all retail traffic compared to 5.6 percent in 2010. Sales on mobile devices surged to 9.8 percent from 3.2 percent year over year. As we saw with PayPal stats from Thanksgiving and Black Friday, mobile shopping volume is increasing by over 500 percent this year.
Mobile shopping was actually led by Apple devices, with the iPhone and iPad ranking one and two for consumers shopping on mobile devices (5.4 percent and 4.8 percent respectively). Android came in third at 4.1 percent. Collectively iPhone and iPad accounted for 10.2 percent of all online retail traffic on Black Friday.
As predicted by eBay, Google and others, tablets were a major platform for shoppers this year. IBM says that shoppers using the iPad led to more retail purchases more often per visit than other mobile devices with conversion rates reaching 4.6 percent compared to 2.8 percent for overall mobile devices.
Amazon is predicting record Kindle sales next quarter, just as Apple is predicting record iPhone and iPad sales next quarter. But there’s one key difference.
As a result of those record sales, Apple could see a $40 billion quarter in terms of revenue — that will undoubtedly lead to record profit. Meanwhile, Amazon, even with record sales, is warning that their numbers could dip. They may even lose money next quarter. Possibly a lot of money.
Apple is going to set records for their two most financially successful products. Amazon is going to set a record for a product that they may actually lose money selling.
Apple and Amazon play in the same general space now, but they play in that space in the exact opposite way of one another.
Apple’s model clearly works in this space. Amazon’s model? We’ll see. Remember, they’ll be competing with Apple on the price of much of their digital content as well.
The ability to upsell Amazon Prime may end up being the key here…
Update: And a good follow-up tweet from Michael DeGusta:
…and next quarter Apple will actually report their iPhone/iPad sales while Amazon will not report their Kindle sales.
Amazon has never reported actual Kindle sales numbers in their earnings statements. It’s very odd. They always talk about setting sales records, but they refuse to back those claims up with any actual data. It’s like bragging you’re the best at something but when asked why that’s the case, you respond with “just because”.
Maybe Amazon will change this odd trend and actually report tangible numbers in the holiday quarter.
Update 2: As a few have pointed out, the wording in The Next Web’s post is a bit confusing. They talk about decreases in revenue, but it would seem they actually mean net income (with revenue growth not quite lining up with record sales growth). I’ve tweaked my wording to make this more clear.
As always, profit is the key here — it’s the money you get to keep. Again, with their record revenue, Apple will undoubtedly also see record profit. But with their own massive revenue, Amazon may actually lose money next quarter. Their release indicates that Q4 income could be anywhere from a $250 million gain to a $200 million loss! Think about that for a second. That’s pretty crazy.
NOOK Color Apps and Where We Rank
Our popular Bible IQ Builder App on NOOK Color (also available for Apple and Android) is in the Top 20% when ranked by number of sales! Thank you!
Just click on the NOOK Color ad on the left-hand side of the blog to snag it. Have fun at church or youth group playing against your friends. You can share your scores on Facebook for some friendly competition too! It is a fun way to increase your knowledge of the Bible that be done anywhere, anytime!
Yep, it just showed up. Go to Settings -> Music and you’ll see it magically appear at the top. The service isn’t live just yet, but it sure looks like it will be soon.