Amazon's Kindle Fire could sell 6 million units for the fourth quarter, as the company prepares to announce fourth-quarter earnings Jan. 31.
(NASDAQ:AMZN) isn't a company prone to revealing unit sales for its Kindle line of
e-readers and tablets, providing a constant source of consternation for
analysts trying to model the e-commerce giant's financial results.
stopped the analysts from prognosticating based on word of mouth, and the
guessing game is reaching a crescendo as the company prepares to unveil its
fourth-quarter results Jan. 31 after the bell.
Nicolaus analyst Jordan Rohan said he was increasing Amazon's Kindle Fire sales
estimates from 5 million to 6 million, leading him to raise Amazon's Q4 net
revenue estimate to $286 million.
device proliferation strategy has broader implications than most
appreciate," Rohan wrote in a research note Jan. 29. "Tablets,
including iPad and Kindle Fire, are rapidly taking share from PCs and
Fire has staked out an important market position due to its loyal Amazon
customer base and attractive (low) device pricing. We believe the lower
hardware price will correlate with high e-book and video content attach
fact that Amazon is selling tablets that cost $201.70 to build for $199. Rohan
said the shift to digital delivery of content could help Amazon avoid free
about digital media delivery being a long-term winner jibes with what RBC
Capital analyst Ross Sandler claimed last week. Sandler said
the Fire could earn the e-commerce giant
$136 per device in content sales over its lifetime.
surveyed 216 Kindle Fire owners and found roughly 80 percent of Fire owners
have purchased e-books, with 58 percent of respondents owning up to buying more
than three e-books within the first two months of owning the tablet.
Sandler is only modeling Amazon to sell 3 million to 4 million Fires for Q4. To
prop up his 6 million unit sales estimate, Rohan observed is that the Kindle
Fire has been a bestseller on Amazon in each week since its introduction Nov.
15. Moreover, Amazon itself said it was building millions of units of Kindles and
He also said
checks with mobile advertising companies suggest the Kindle Fire is ramping the
way that iPad ramped upon its introduction. That jibes with Flurry's finding;
the mobile analytics firm said
application usage sessions on the Fire have
rivaled that on the Samsung Galaxy Tab.
on content and services figures to continue in 2012, which is when the company
is expected to expand its streaming video service, which is currently
pay-per-view, to a subscription service in which it will compete with Netflix.