Kindle Tablet Info
Kindle Fire more profitable for Amazon than expected, says analyst
Based on hardware alone, the Kindle Fire isn't particularly profitable. Amazon may not sell it at a loss, but it's estimated that it only brings in a few dollars for each unit sold. When marketing is taken into account, you could say that the company (roughly) breaks even on hardware. However, it doesn't take a genius to see that Amazon has a profitable device in its hands nonetheless.
The Fire prominently features Kindle books, Amazon MP3 music, Amazon's AppStore, Amazon Prime, and, of course, the Amazon online retail store. People are more likely to interact with something that they see every day, and the Kindle Fire takes millions of customers on a daily trip to a virtual Amazon shopping mall. This is where the real profit lies.
One analyst, however, believes that the profit margin for each Kindle Fire is actually a bit higher than was previously thought. Ross Sandler of RBC Capital sees "frequency of digital goods purchases" as outweighing investors' expectations. His conclusion comes from a survey that he conducted of 216 Kindle Fire owners.
You might like
Main Menu
 |
Recommended
- Kindle Fire HD Hands-On Yesterday, at an event in Santa Monica CA, Amazon CEO Jeff Bezos unveiled the Kindle Fire HD. The device comes in two flavors, 7-inch and...
- A new version of Silk Psst! Remember us? Roughly 344 days ago, we debuted this blog to announce the launch of our new browser, Amazon Silk. We originally expected...
- gedeROM Android 4.0 brings Linaro speed bump to Kindle Fire The developers at Linaro have been showing off some code optimizations that allow Google Android 4.0 to run up to 100 percent faster under...
- Dreaming of a better Kindle Fire When the Kindle Fire arrived last year, I bought one. For $200, why not, right? I suspect a lot of people felt the same way—and during the...
- Amazon 6.3.1 Kindle Fire update with parental controls video demo Amazon has released a new firmware update for its Kindle Fire tablet that adds new, and much needed, parental controls. The new update,...
|
