Each Kindle Fire to generate around $136 in revenue for Amazon

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  • reni_shin2
    • Aug 2007
    • 9595

    Each Kindle Fire to generate around $136 in revenue for Amazon


    Each Kindle Fire to generate around $136 in revenue for Amazon.


    Hardware costs might be overstepping the selling price of Kindle Fire, but Amazon is generating enough money in content sales, and prime membership that we can easily call it a very profitable venture.

    According to a survey by investment banking firm RBC, each Kindle Fire sold is generating over $100 in additional revenue thus making up much more than initial loss of around $17.

    Hardware costs might be overstepping the selling price of Kindle Fire, but Amazon is generating enough money in content sales, and prime membership that we can easily call it a very profitable venture.

    According to a survey by investment banking firm RBC, each Kindle Fire sold is generating over $100 in additional revenue thus making up much more than initial loss of around $17.


    As you can see in the table, major amount of additional revenue is coming from e-book sales as well as apps, while physical good might not be generating much revenue that are strengthening company’s core business.
    Last edited by reni_shin2; 23 January 2012, 11:57.
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