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Showing posts with label digital books. Show all posts
Showing posts with label digital books. Show all posts

June 8, 2011

Kindle Sales To Grow 48%, Contributes 10% of Amazon revenue

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Amazon's Kindle business is about to contribute 10% of the company's overall revenue, says Citi analyst Mark Mahaney.

Mahaney estimates Kindle unit sales for 2011 to be 17.5 million, which is $2.1 billion in revenue. He estimates eBook sales to be 314 million units, which is $1.7 billion. Combined that's 8% of Amazon's 2011 revenue.

For 2012, he sees Amazon selling 26 million Kindles and 751.5 million eBooks. Combined those sales would be $6.1 billion, or 10% of Amazon's revenue. (Mahaney expects a sub-$100 Kindle by year end to drive sales.)

 This means that the Kindle would grow  " by 48% in 2012, which  is a " staggering" achievement by any means.  Last Month it was " announced that "Kindle E-Books are selling more than hardcover and paperback print books on Amazon, said the company in a statement yesterday.

For every 100 print books being snatched up on, 105 Kindle E-books are being sold, and Amazon Founder and CEO Jeff Bezos could not be happier,

The Kindle began selling in 2007, and reached important milestones in 2010 and 2011. Last July, Amazon announced that Kindle E-Books were selling more than hard covers, and six months later the Seattle-based company said that Kindle books were outselling paperbacks,

According to Techcrunch,The quick rise of the Kindle can be attributed, at least in part, to the steep price cuts Amazon has been making. A year ago the device cost $259. Amazon slashed it to $189 in June 2010, then began offering a Wi-fi only version last summer for $139. And now it’s gone even lower with an ad-supported version for only $114. Amazon says that this new model, which is called ‘Kindle with Special Offers’, is already selling more than the other Kindle devices
"the war for your digital wallet"When a segment accounts for 10% of a business, Mahaney says it can affect the overall growth the company. As Kindle continues to gain in popularity, we will see it start to really drive Amazon's growth.