Monday, June 28, 2010

Forbes: Amazon Could Earn $800+ million in 2010 from eBooks Sold to Kindle Owners

The report is authored by Forbes's Trefis Team:

According to research done by Foner Books, Amazon could be selling around 24 eBooks per Kindle per year. If we consider about 3 million Kindle units in use in 2010, Amazon could sell 72 million eBooks for 2010. If we consider the average pricing to be around $12 per eBook, Amazon could be earning $864 million in 2010 from eBooks alone that are distributed on the Kindle device.

The upside can be even greater if Amazon succeeds in becoming the eBook store of preference on the iPhone (50+ million sold), iPad (3+ million units sold) and Android-based smartphones / tablets, although the number of eBooks downloaded per device is likely to be lower for such devices.

If current trends continue, there will be more than 100 million iPhone, iPad and Android-devices in use within the next 1-2 years. Even if each device were to download only one eBook through the Kindle store annually (at $12 a piece), that would imply $1.2 billion of Amazon sales from non-Kindle devices. ...