How Much is the Kindle Worth to Amazon? Maybe $5.42 Billion in 2011

We don’t know much about the Kindle ebook reader, Kindle apps, and ebook sales in terms of sales. Amazon doesn’t say how many Kindle devices have been sold. They hav noted that ebooks outsold paper books during the last holiday season. And, it is fair to say that you can find a lot of people reading Kindle ebooks on the Kindle reader itself or using one of the Kindle apps ported to a wide variety of desktop and mobile platforms. One brokerage analyst, however, is willing to put a dollar figure on Kindle’s value in 2011.

Kindle to Generate $5.42 bln Revenue in 2011 for Amazon: Analyst

A significant $1.21 billion of that revenue is said to be gross profit. And, Caris & Co. projects that Amazon will see $7.96 billion in revenue for 2012 with $2 billion of that being gross profit. A bit of arithmetic shows that the profit percentage will rise from 22% in 2011 to 25% in 2012.