Before the Kindle Fire was released, there were a lot of doubters. People that doubted the tablet’s ability to appeal to the masses. People that doubted that a forked version of Android would be viable. People that doubted Amazon’s ability to develop a proprietary market for app distribution. Well, look who’s eating their words now. It looks like an analyst from RBC Capital recently looked into Amazon’s wunderkind to see what kind of numbers it’s putting up. Let’s keep in mind here that the Kindle Fire is competitively priced at $199.99. With Amazon offering tax-free retail for most, that’s not a bad bargain.
Now, taking that into account, Ross Sandler from RBC used some financial wizardry to figure out how much owners are are spending on all the content they sell, then used that to develop a projection of lifetime operating income per unit. That number came in at $136 bucks. If you’re saying WOW, excuse us while we re-position our jaws that hit the floor. For those without a calculator, that’s about 68% of the actual cost of the tablet and with all the content that Amazon is leveraging (Amazon MP3, Kindle Books, Amazon App Store, Amazon Prime Video Streaming, etc.), this number is bound to get higher. So all you naysayers, eat crow.
via Android Guys