Silicon Alley Insider reports on an analysis of Amazon’s potential income
from the Kindle:
The Kindle could contribute 3% of Amazon’s overall revenue in two years, argues Citi analyst Mark Mahaney, who has a born-again relationship with the device. Combining device and book sales in an iPod/iTunes-like model, Mark says, the Kindle could add $750 million to Amazon’s top line in 2010.
These projections seem aggressive, in part because the Kindle requires consumers to significantly change their current behavior (Start building an e-book collection–vs. the iPod’s ability to play music consumers already owned). But most of Mark’s individual assumptions seem reasonable.