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Kindle Fire content will drive Amazon’s profits
Amazon is set to pocket an average of USD136 in content-based revenue for every Kindle Fire tablet it sells, according to a new report from RBC Capital. RBC Capital analyst Ross Sandler says that the additional revenue comes from e-book, apps and physical goods purchases through Amazon, boosting the online retailer’s bottom line. Around 80% of Kindle Fire owners have bought an e-book, according to RBC, with 58% of that figure claiming to have purchased more than three in the 60 days after they bought the tablet, illustrating the continued importance of the Kindle Fire’s e-reading capabilities. RBC expects Amazon to sell as many as 4m Kindle Fire devices during its fiscal Q4.
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