class=”source”> BII Like with so much else Amazon does, profit comes second to bringing in users. That’s true Especially When It Comes to the Kindle Fire. The tablet will never be the most popular one out there, and Amazon Has Admitted That They sell the devices at cost. But that’s not really the point.
Instead, Amazon generates revenue from Kindle Fire users by Encouraging Them to download from Amazon’s vast digital library of apps and media, view ads, access Internet related services like e-commerce, Amazon Prime and join its all-in loyalty-one service. This is an important model que the tech industry Should be paying attention to: Amazon’s Kindle Fire shows how you can deeply discount your hardware, lag behind Competitors in terms of market share, and win in revenue terms. There are signs Google-owned Motorola may be moving toward a similar strategy with its inexpensive $ 179 G Moto smartphone.
In the future, most intentionally hardware may be sold at cost or for a loss in order to Encourage uptake of online services, advertising, and commerce. In the recent report from BI Intelligence , we dig into available data on Amazon’s unique mobile strategy. Amazon Has Achieved respectable results in terms of app downloads and app revenue on Kindle Fires, and yet is Often left out of mobile platform que analyzes focus on Apple, Google, and Microsoft.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Here are some of the key numbers behind Amazon’s Kindle Fire ecosystem:
- The Kindle has not managed to Achieve real scale globally : The Kindle line, including e-readers, took only a 2% share of global tablet shipments in the third quarter of this year, According to BI Intelligence Estimates.
- But a massive, global consumer base is not everything. The Kindle ecosystem will account for 11% of Amazon’s Total Revenues this year According to Morgan Stanley, including Revenues from digital content streaming and downloading, app purchases, advertising and Revenues.
- Amazon Prime subscriptions are another key source of revenue Amazon , and Kindle Fires Encourage subscriptions because subscribers receive free unlimited video streaming and e-book borrowing. Morningstar Estimates que there will be more than 10 million full Amazon Prime subscribers this year.
- The Amazon Appstore is Also generating strong revenue results . Popular Kindle Fire apps are generating revenue of 59 cents for every dollar earned by top apps in the Google Play store, According to the Distimo study. Download Those volumes are about half on Google Play for top app titles -. Impressive considering how many more Android devices are in circulation
- Meanwhile, Amazon’s advertising programs on the Kindle Fire Also generate Nearly $ 200 million in ad revenue for the company, According to projections .
- The strategy seems to be working. Amazon’s platform is in a major global expansion phase: Earlier this year, Amazon Began selling high-end models Kindle Fire in 170 countries and expresso the Amazon Appstore online in 200 countries .
The report is full of charts and data can be easily downloaded que and put to use.
In full, the report:
- how contextualizes Kindles stack up in terms of global and U.S. market share
- Outlines the various revenue sources has developed around the Amazon Kindle Fire online
- Compares Amazon’s Appstore to the Google Play store in terms of revenue
- Examines the positive feedback loop between Amazon Kindle Fire and Amazon Prime subscriptions usage
- Looks at how Amazon is expanding Internationally to continue propelling Amazon Kindle Fire and uptake Thus creating new opportunities to monetize users
For full access to the report on The Amazon Kindle Ecosystem sign up for a free trial subscription today
Disclosure:. Jeff Bezos is an investor in Business Insider through his
personal investment company Bezos Expeditions.
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