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By Paul Biba

suisse.jpgThis is from an article on TWICE reporting on a study by Credit Suisse. There is a lot more information in the article, so check it out. Thanks to blog kindle for the link:

E-readers are on track to penetrate about a third of the U.S. adult book-reading population in five years, up from only 1 percent penetration in 2008, according to a study published today by Credit Suisse.

The installed base of e-readers could soar from 1 million in 2008 to 32 million in 2014, the report stated. Credit Suisse expects about 4 million e-readers will be in use in the U.S. by the close of this year.

Credit Suisse expects Amazon, specifically, will sell 1.8 million Kindle e-readers in 2009, increasing to 2.9 million in 2010 and up to 8.5 million in 2014, marking a compound annual growth rate of 36.4 percent.

Amazon’s revenues from the Kindle should climb from $623.6 million in 2009 to $813.7 next year, reaching $1.8 billion in 2014.

However, while Kindles are profitable, Amazon loses an estimated $1.50 per e-book it sells, although this should flip to profitability in 2012 as Amazon’s costs come down. At that time, Amazon’s profits on e-book sales will total $31 million on revenue of $802 million.

 
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