Kindle Fire Content Sales Adding up to Amazon’s Tablet Revenue
Estimations published by RBC Capital are indicating that e-books, videos and programs for the Amazon Kindle Fire may account for close to $140 extra revenue per device. That’s almost 70 percent the cost of a stand-alone Kindle Fire, which is priced at $199.
Many business analysts were initially skeptical about the Kindle Fire’s chances of success, given its extremely low price at $199. However, it has proven to be a viable, budget-priced alternative to the Apple iPad, with the Amazon ecosystem being another main selling point.
Though, Amazon declined to release exact figures for content sales, RBC Capital’s Ross Sandler was able to come up with an estimated breakdown for the $136 per device spent on content. He released these projections after speaking to 216 individuals who own a Kindle Fire.
According to Sandler’s survey, 80 percent of the respondents took advantage of the Kindle Fire’s main purpose and went for e-books. Additionally, 58 percent purchased four e-books or more within two months after getting the device.
Applications were also quite popular, as 41 percent of those surveyed confided that they purchased three or more apps to go with their Kindle Fires. Sandler also believes that three to four Kindle Fires were sold in the fourth quarter of 2011.
According to Gene Munster, an analyst from Piper Jaffray, Amazon’s annual domestic revenue growth is predicted to be at 44 percent when they make their fourth-quarter figures public on January 31.
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