Kindle to make $1 out of every $10 Amazon brings in

Amazon’s success with its Kindle business is hitting an inflection point as it nears a full one-tenth of the company’s total revenues, according to an analyst report. The online retailer is likely to see Kindle-related revenue hit 10 percent of its total revenue by next year, said Citi analyst Mark Mahaney. Mahaney said based on recent disclosures by Amazon and Citi’s own analysis, he believes that Amazon will sell 17.5 million Kindle units this year, worth more than $2 billion in revenue, and 310 million Kindle books, which will generate more than $1.7 billion this year. He said that would mean a combined revenue of almost $3.8 billion or about 8 percent of revenue through Kindle activities. Next year, Mahaney said he expects Amazon to sell 26.2 million Kindles and 751.5 million Kindle books, worth a combined $6.1 billion in revenue or 9.9 percent of Amazon’s total. Mahaney said when a business segment reaches 10 percent, it has the potential to impact the growth rate of the total business.