Amazon's Kindle Worth $1 Billion

Amazon's reader wins some converts.


After early production runs sold out, speculation about just what kind of product Amazon's little white reader will be for the online retail giant (An iPod for books? A better Sony Reader? Something in between?) is now getting some closer attention.

Amazon (AMZN) has kept diligently mum on its real sales numbers, but Mark Mahaney, a Citigroup analyst, says they're looking much stronger than expected.

He pegs 2008 sales at around 380,000, double his earlier estimate. That translates to revenue above $1 billion by 2010, compared with his earlier estimate of $400 million to $750 million. It's also nearly 4 percent of Amazon's total sales—a number that puts the Kindle in the sort of territory that could make it a real growth driver if it can become one of this holiday season's "it" gadgets.

Amazon shares are up more than 10 percent today on the news.