A rumored Amazon Inc. (Nasdaq: AMZN) Kindle Tablet will deliver billions of dollars in fresh revenue next year.
In addition to its hardware sales, the tablet will provide a quick and convenient way for Amazon to capture a bigger chunk of the digital media market and allow customers to buy any of its millions of offerings from almost anywhere.
The 7-inch tablet is expected to appear within the next month or so and cost just $250. Such a low price from a trusted brand like Amazon will disrupt the entire tablet market.
"A proprietary tablet would allow Amazon to widen itscompetitive moat, improve consumer experience and benefit from the rapid growth in mobile usage," Jefferies & Co.'s (NYSE: JEF) Youssef Squali wrote in a report.
Although analysts expect Amazon to make little profit from the tablet itself, its potential for selling more of its digital wares such as e-books, movies, music and Google Inc. (Nasdaq: GOOG) Android apps is boundless.
The Kindle e-reader shows how hardware can drive media sales. It has helped Amazon capture 90% of the e-book market.
The Kindle e-reader will account for 9.9% of Amazon's total revenue next year, just five years after its debut, according to Citigroup Inc. (NYSE: C) analyst Mark Mahaney. Mahaney estimates about half of that revenue, $6.1 billion, will be from sales of the device, with the other half from e-books.
An Amazon Kindle Tablet will open up multiple digital avenues of growth.
Take online video sales, for example. Amazon has just 4.2% of that market, well behind the 65.48% share of Apple Inc.'s (Nasdaq: AAPL) iTunes Store.
In terms of additional revenue, the Kindle tablet could quickly rival that of the e-reader.
-
Amazon.com Inc (Nasdaq: AMZN): Investors Flee on Weak Q3 Outlook
Amazon Kindle
Amazon Kindle Tablet Will Plump Revenue and Disrupt Market
Barnes & Noble Sale Won't Rid the Retailer of its Woes
Barnes & Noble Inc. (NYSE: BKS) announced late Tuesday that it would put itself up for sale. But even with its recent struggles analysts aren't sure of what the company hopes to accomplish.
"There are companies that do this because they have to and there are companies that do this because they have impatient shareholders and I'm not sure what's driving this kind of statement," Michael Norris, a senior analyst at Simba Information, told The Associated Press. "It just seems daft."
The company's board said that it believed Barnes & Noble stock was "significantly undervalued" and that it had established a special committee to review its options.
"There are companies that do this because they have to and there are companies that do this because they have impatient shareholders and I'm not sure what's driving this kind of statement," Michael Norris, a senior analyst at Simba Information, told The Associated Press. "It just seems daft."
The company's board said that it believed Barnes & Noble stock was "significantly undervalued" and that it had established a special committee to review its options.
Hot Stocks: Apple's iPad Picks Up Where Amazon's Kindle Left Off
When it unveiled the Kindle e-reader in late 2007, Amazon.com Inc. (Nasdaq: AMZN) created a whole new market for digital books, newspapers and magazines.
Now industry innovator Apple Inc. (Nasdaq: AAPL) is taking that market to an entirely new level.
After months of spirited speculation, Apple on Wednesday introduced a full-color e-reader that doubles as a netbook.
Now industry innovator Apple Inc. (Nasdaq: AAPL) is taking that market to an entirely new level.
After months of spirited speculation, Apple on Wednesday introduced a full-color e-reader that doubles as a netbook.
The Three Tech Businesses Investors Can't Afford to Ignore in 2010
The technology sector has always been about The Next Big Thing, and while next year will be no exception, products and services purchased will more reflect the needs of consumers and businesses - unlike the past when more tech buys reflected "wants."
Call 2010 the year of "necessary technology."
While 2009 has seen a dramatic turnaround in the world's stock markets, the rest of the key economic indicators - such as manufacturing, inventories, and jobs - have lagged behind. This has prompted less discretionary spending on technology, and even a postponement of some necessary purchases.
Call 2010 the year of "necessary technology."
While 2009 has seen a dramatic turnaround in the world's stock markets, the rest of the key economic indicators - such as manufacturing, inventories, and jobs - have lagged behind. This has prompted less discretionary spending on technology, and even a postponement of some necessary purchases.
How Sustainable is the Kindle's Early Success?
Nearly two years after Amazon.com Inc. (Nasdaq: AMZN) released its Kindle e-book reader, it appears that digital books will finally be embraced by consumers previously reluctant to buy a pricey e-reader device. Roughly 3 million e-readers will be sold this year, Forrester Research Inc. (Nasdaq: FORR) said in a recent report that revised a previous […]