It looks as though Amazon’s Kindle is going to turn out to be more of a success and a moneymaker than many people ever expected. It will be if what CitiGroup analyst Mark Mahaney says is correct. He says that in 2008, Amazon will sell about 380,000 units which is about double of what he originally said would sell. He also compared this to equal the number of iPods that sold during the first year after they were released. Could the Kindle be Amazon’s iPod?
With more units expected to sell, this means an increase in revenue. Mahoney says that by 2010, if sales continue as expected, the Kindle could generate $1.1 billion which translates out to about 4% of all of Amazon’s business. Earlier this year he estimated weaker revenue of $750 million. In the three months leading up to the holiday season this Winter alone, Mahoney says that about 150,000 Kindle units will ship. Not bad!
Up until the Kindle, other companies who have tried to come out with an e-book reader haven’t had much luck. It looks as though Amazon just might have come up with just the right product to be the king of e-book readers…