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Wednesday, January 14, 2009

Sales projections for the Kindle

A recent article from The New York Times provides some interesting projections for the Amazon Kindle if it were to follow a similar sales trajectory to the Apple iPod. The article suggests that if the second generation Kindle can quadruple sales just as the second generation iPod did, then Amazon could sell 2.2 million Kindles this year. If every Kindle owner then bought two books a month for $10, with a 15% margin on sales, the Kindle earnings could reach $330 million, resulting in 27 times the expected earnings for the Kindle.

If Amazon also releases a student version of the Kindle this year and can tap into the $5.5 billion annual United States college textbook market, what will sales look like then?