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Amazon Kindle still proclaim sell at cost . Far from being a charity, the firm of Jeff Bezos still gaining money with the Kindle and its ecosystem. Yes, but how? Morgan Stanley Research has estimated the revenue generated by the Kindle line.
According to the analyst firm, Amazon world should sell tablets and Kindle e-readers for $ 4.5 billion dollars this year, an increase of 26% compared to 2012. This slow growth for the next two years. The Kindle does that would yield $ 5 billion in 2014 to Amazon and $ 5.5 billion in 2015.
Unclear whether these forecasts are based on a shift of the Kindle or simply lower their prices in conjunction with the market trend. Fortunately for Amazon, the strategy of selling the Kindle at cost price to attract customers to the digital content seems to be paying.
According to Morgan Stanley, Amazon gain with digital books, movies, games, music and other $ 3.8 billion this year. The next year, content revenues exceed those same shelves and reading with 5.7 billion.
Overall the Kindle ecosystem, including $ 192 million on advertising would account for 11% of the total turnover of cyber shopping .
short, the Kindle is a real cash machine for Amazon Kindle and the next generation should not depart from the rule
Source: AllThingsD
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