Almost $5.5 Billion in Kindle Revenue for Amazon in 2011 Projected
Not only is the Kindle a multibillion dollar product platform for Amazon.com, Inc., it will represent $5.42 billion in revenue for the company in 2011, says an analyst for Del Mar, California-based Caris & Co., a full service investment bank.
Yup, you read that right. They're saying the Kindle market — that's the whole Kindle ecosystem, from the devices themselves, ebooks, apps, other digital content, and more — will generate nearly five-and-a-half billion dollars in revenue for Amazon this year alone. And get this: Of that number, $1.21 billion will be gross profit for Amazon.
Wait, there's more: Next year they project nearly $8 billion in total revenue and $2 billion in gross profit.
Now, no one's really sure about these numbers exactly, even after the fact, since Amazon has a tendency to keep mum about its Kindle sales metrics. So this is all based on anecdotal evidence and such. But even if projections are off by a billion or two — holy cannoli folks! To any book publishers still not playing in the Kindle playground, are you kidding me? That's at least three, maybe even five, fat ladies singing right there for goodness sake.
News of the Amazon Kindle's success — except maybe for its magnitude — is really not surprising. Owners of the physical Kindle ereader, for example, are now more or less practically committed to purchasing more ebooks from Amazon. And there will be continuous growth in sales of other digital content as well as this customer base gradually "discovers" all the other consummables available to it, like subscriptions to newspapers, magazines and even blogs, Throw in the fact that free Kindle reader apps are now available on all major computing platforms, it's pretty clear that things are starting to look better and better for Amazon and its Kindle.
Reference: ibtimes.com article
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