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

By Rob Scott
October 27, 2011

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

Benn Carr October 26, 2011 at 09:50am

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

Benn Carr October 26, 2011 at 09:50am

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

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2 Comments