On the Kindle – a device Apple CEO Steve Jobs once suggested to the New York Times he wasn’t sure of the long-term future of – the analyst claims greater than expected Kindle sales, predicting 2 million of the devices will sell this year, as opposed to his previous 1.5 million sales estimates.
Amazon’s Kindle has, “definitively accustomed itself as the iPod of the book world,” writes Citigroup analyst Mark Mahaney.
Mahaney has numerous nuggets of data to offer on the giant online retailer in a note distributed to clients offering his recommendation to buy shares in the company, with a price target that’s up $30 to $170 per share.
The analyst cites his own analysis which suggests accelerating online retail sales this season, with Amazon accepting online allotment and experiencing accelerating company cartage to its site.
That’s no mean feat – the analyst predicts $1.6 billion in Kindle and eBook sales next year, generating 5 percent of Amazon’s revenue.
However, while Mahaney thinks Kindle has become the iPod of the book world, publishers continue to explore new publishing opportunities and technologies, suggesting the way to be open for multiple players in the segment, not excepting Apple with its own iPod-based vision for publishing.
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