Amazon.com, Inc.’s AMZN newly launched Kindle Colorsoft e-reader is plagued by a yellow discoloration band, with an analyst predicting a software fix.
What Happened: On Thursday, Ming-Chi Kuo, an analyst at TF Securities, took to X, formerly Twitter, and said that the yellow discoloration bands are due to Amazon’s use of a different OCA compared to grayscale e-paper displays.
This change was made to improve the contrast capabilities of E Ink’s Kaleido color e-paper technology, he said. “While component suppliers have developed several hardware solutions, Amazon seems to be leaning toward a software-based fix.”
His comments followed a report by The Verge, which stated that Amazon is working to rectify the issue with its first color e-reader. Customers who already own a unit can contact Amazon for a refund or replacement.
Shipping dates for the Colorsoft may also be delayed as Amazon works to fulfill replacement orders alongside new orders for the device.
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Why It Matters: Last month, Amazon reported third-quarter net sales of $158.9 billion, marking an 11% increase compared to the previous year. This figure surpassed the Street consensus estimate of $157.2 billion, according to datafrom Benzinga Pro.
During the earnings call, Amazon CEO Andy Jassy said, “We now have over 20 billion average monthly pages read on Kindle devices worldwide.”
According to Statista, a German database company, 11% of U.S. consumers aged 18 to 29 own an e-reader. Data from the Consumer Insights Global survey also reveals that 17% of Americans between the ages of 30 and 49 own one as well.
Price Action: Amazon shares ended Thursday’s session with a 1.48% gain, closing at $210.16. In after-hours trading, the stock saw a small increase, rising to $210.27 at the time of writing.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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