Amazon capturing market share with Kindle Fire

Come on baby, light my fire.

Recent sales figures released by Amazon show that it has sold more than 1 million Kindle eReaders of the past three weeks as shoppers load up for Christmas. The Kindle Fire Tablet has been the bestselling item at Amazon since its launch 11 weeks ago, with sales rising every week over the past three weeks.

While many speculate that Amazon is taking a loss on each $199 Fire sold, Susquehanna Financial believes that each unit may generate a total of $384 in revenue for the company after you add in the content that users will by.

Amazon is looking to capture a portion of the tablet that is not willing to pay the $499 that Apple (AAPL) wants for the iPad 2. Analysts are speculating that as many as 6 million Kindle Fire units may be sold by the end of the year. While this is more than Samsung or Barnes & Noble (BKS) will sell, it pales in comparison to the nearly 20 million tablets Apple is expecting to sell. One Wall Street brokerage believes that this gives apple roughly 66% of the market, while Amazon would hold 14%.

Amazon.com (AMZN : NASDAQ : US$181.26), Net Change: 1.05, % Change: 0.58%, Volume: 6,751,944

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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