Amazon.com Kindle Sales Expected To Reach $1 Billion By 2010
The Amazon.com Inc. (NASDAQ:AMZN) Kindle is a highly underestimated gadget. While many people scoff at it’s lack of color and it’s old fashioned design (it looks like a Nintendo Game Boy), consumers have found it highly useful. Mark Mahaney, an analyst at Citigroup Inc. (NYSE:C) stated that he expects about 380,000 Kindles to sell in 2008. This is equal to around the same amount of iPods sold during it’s debut year.
Mahaney also stated that he expects the Kindle to generate $1 billion in revenues for Amazon.com by 2010. This would account to 4% of Amazon.com’s total revenues. After the announcement about Kindle’s expectations, Amazon.com shares rose by about 10% and closed at $88.09. The Kindle is currently sold at a price of $359. The device works wirelessly and has a library of 150,000 books to download along with newspapers and blogs.
Amazon.com doesn’t sell the Kindle outside of the U.S. Amazon’s first round of Kindles sold out in less than 5.5 hours of it’s release. The Kindle downloads content through the Sprint EVDO network.@amitchowdhry or on Google+ at +AmitChowdhry