Speaking of Amazon, here’s Jason Del Ray on some insane numbers the company is projected to see from Kindle owners:
Based on its research and analysis, CIRP estimates that Kindle owners spend $1,233 per year on Amazon compared to $790 per year for Amazon shoppers who don’t own one of the company’s e-readers or tablets. Kindle owners aren’t necessarily buying more at a shot, but are buying more frequently.
“Another way to look at Kindle Fire and Kindle e-Reader is as a portal to Amazon.com,” CIRP’s Mike Levin said in a statement. “Kindle Fire provides access to everything Amazon sells, while Kindle e-Reader has become the way that Amazon customers buy books, Amazon’s original product line.”
On the surface, at least, one could make the argument then that Amazon could potentially drop prices on the devices to get them into the hands of more people, since they become more valuable customers. But, drop prices too far and you may attract a different set of customers that may cause that spending disparity to shrink.
This, in a nutshell, is why I think it’s probably smart to think of any phone Amazon does as more of a “Amazon Prime Phone” and less of a “Kindle Phone” (even if it’s called something more along those lines). It’s sole purpose may be to supercharge Amazon sales (both digital and physical)