Photo by @felipepelaquim on Unsplash
(Photo : @felipepelaquim on Unsplash)

Owners of second-generation Amazon Kindles will be rendered defunct later this summer, with the e-commerce giant blocking their ability to purchase new releases on their device via the Kindle Store.

With millions of second-generation Kindles and fifth-generation e-readers still in use worldwide, Amazon has given users more than two months' notice before both types of devices will be denied access to the Kindle Store. The all-important cut-off date has been set at August 17, 2022. From that date onwards, first-generation Kindle owners will be required to buy books for their Kindle from a different device, such as a tablet or smartphone. The only way to purchase books directly through the Kindle Store is to upgrade the Kindle itself.

Which other devices will be phased out from the Kindle Store?

The second-generation Kindle was launched back in 2009, while the fifth-generation e-reader was released three years later. Both iterations have now been in circulation for more than a decade. Amazon has confirmed that Kindle Keyboard devices, the Kindle DX, and the fourth-generation Kindle will also be removed from access to the Kindle Store on this date.

There is some solace for anyone thinking of upgrading to a newer Kindle model. It's not only possible to acquire an upgrade through the Kindle Store, but there are also plenty of discounts up for grabs within its "Summer Sale". The front-lit Kindle and the Kindle Paperwhite are both available with limited-time discounts.

Kindle move coincides with Amazon's major stock split

This move comes at an integral point in the company's history. It recently announced a 20-for-1 stock split - the first of its kind in over 20 years of trading. By effectively splitting each share in Amazon into 20 new shares, the company hopes to appeal to a new wave of retail investors in the company. That's because its new share price started out at one-twentieth of its share price prior to the split.

Photo by Andrew Stickelman on Unsplash
(Photo : Andrew Stickelman on Unsplash)

Amazon is still the third most valuable equity in the Nasdaq, behind Microsoft and market leader Apple. This means it carries the third-highest weighting for those who trade the price of the overall Nasdaq index. The Nasdaq and the S&P 500 are the two most popular indices for investors in US equities. It's possible to invest in exchange-traded funds (ETFs) that track such indices. An ETF is one of the most effective ways to diversify an investment portfolio, with no need to buy individual shares in the hundreds of companies listed within a single index. Even if the share price of one particular asset within an ETF falls, the chances are it can be offset by gains from other assets in the same ETF.

Stock splits are often an indication that a company is booming - and that's certainly the case at Amazon HQ. In its 2021 fiscal report, Amazon's revenues were up almost 22% year-on-year, posting revenues of a staggering $470 billion. Furthermore, its net profits were up even higher still to $33.4 billion - a 56% year-on-year gain.

Upon completion of its stock split, Bloomberg confirmed that shares in Amazon were already up 4.8% during the first trading session post-split. A large part of the rise was also based on the easing of Covid-19 restrictions in China, resulting in a market rally on multiple tech and internet giants.