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ABI Research estimates Amazon (AMZN +2.8%) only needs to generate about $10 in content sales a...

ABI Research estimates Amazon (AMZN +2.8%) only needs to generate about $10 in content sales a month per Kindle Fire to generate a cozy 20% profit margin on the device. It's a plausible goal that helps make the Kindle Fire a "credible proposition," according to the firm.
Comments (4)
  • Paulo Santos
    , contributor
    Comments (17862) | Send Message
     
    "per month", "per Kindle". Yes, right. It's the same as expecting Apple's higher-end 500 million iOS devices to each generate $10 per month per device, or $60 billion per year. AAPL's revenue from iTunes is a fraction of that.
    24 Jan 2013, 11:09 AM Reply Like
  • PSalerno
    , contributor
    Comments (3643) | Send Message
     
    This is just hope, but the ability of AMZN's management and analysts is to feed those hopes pushing always in the future their realization.
    24 Jan 2013, 12:34 PM Reply Like
  • shreyapunya@hotmail.com
    , contributor
    Comment (1) | Send Message
     
    10 per month is too high to spend on kindle. I rarely pay for apps even on iphone. I mostly get free apps. May be the comment was meant to say 10 bucks per year
    24 Jan 2013, 03:06 PM Reply Like
  • HZLIU
    , contributor
    Comments (212) | Send Message
     
    Consumers using Kindle are much more frugal than those using iPad. It is not possible for Kindle users spend more money on content than iPad users.
    24 Jan 2013, 03:10 PM Reply Like
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