Sunday, March 8, 2009

The Kindle 2 week - part 3: How much moeny it will make?

The Kindle 2 is not only an updated version of the Kindle, but also a money-making machine for Amazon according to analysts' estimates.

How much money? well, it depends which analysis you read. Greg Sandoval reports on CNET news ("
More heady Wall Street predictions for Kindle 2") on all the figures that have thrown up in recent days:

: Analyst Mark Mahaney published a report that predicted the Kindle 2, which he refers to as the “iPod of the Book World,” would generate $1.2 billion in revenue by 2010 (4.4% of Amazon's revenues). How did he reached $1.2 billion? check out his calculations (published on MediaMemo).

Collins Stewart LLC: analyst Sandeep Aggarwal said Amazon will generate US$1.4 billion from Kindle sales and book downloads by 2010. Collins, according to Sandoval, also compared the Kindle 2 to the Sony eBook Reader in 13 different parameters and concluded that "Except for (the) touch-screen and built-in reading light offered by Sony, the Kindle is a much better device."

And one more -
Barclays Capital: Analyst Douglas Anmuth estimated more than 1 million Kindles may be on college campuses by 2012, generating an additional $700 million in revenue for Amazon. Total revenue from Kindle sales and downloads may reach $3.7 billion by that time, he said.

If you're wondering how many Kindle devices were sold so far, you won't find the reply on Amazon, but Citigrouop Analyst Mark Mahaney estimated Amazon sold 500,000 devices last year.


Raz @ Eco-Libris

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