Kindle Fire May Set Records, but Content Sales Needed to Turn a Profit

  • Amazon CFO Tom Szkutak is predicting record sales of the Kindle and Kindle Fire. However, the company also anticipates a lag in revenue after initial sales of the devices, as consumers get acquainted with their machines before purchasing content for them.
  • “Much of the profit from these products would come from digital purchases by consumers post-sale,” reports The Next Web.
  • “Once a customer has purchased a device, what else do they buy? We certainly have some data now that we didn’t have prior to the launch [of the ad-based Kindles]. Once the customer purchases the Kindle and are carrying around this massive selection at their fingertips, they buy more content,” said Szkutak.
  • In a related Geek.com post, it was noted that the Kindle Fire may become the best-selling Android tablet ever, as pre-orders continue to flood in.
  • Amazon is producing “millions more” tablets to match the demand that has overwhelmed the company since announcing the slate a month ago.
  • The Fire will sell for $199, possibly making it an attractive alternative to Apple’s iPad, which starts at $499.

2 Comments

  1. does/will Amazon do anything to hinder the Kindle app on the iPad in order to advantage the Fire?

  2. does/will Amazon do anything to hinder the Kindle app on the iPad in order to advantage the Fire?

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