Source: http://www.businessinsider.com/new-estimate-amazon-kindle-cost-2011-10


With Amazon only charging $200 per Kindle Fire, it’s widely assumed the company is taking a major loss on each device sold.

That might not be the case, after all, according to a new estimate of the cost of Kindle parts by UBM TechInsights, which says the Kindle Fire’s parts are $150 in total. This would suggest Amazon is breaking even, or turning a profit on each Kindle sold.

Obviously, a Kindle Fire is more than parts. It has to pay people to put to them together, it has to pay for shipping, storage, etc. UBM TechInsights doesn’t have an estimate for those costs.

For a point of comparison, UBM estimates the iPad’s components cost $270 for a wireless version, and the BlackBerry PlayBook’s components cost $170 for a 16GB version.

Previously we saw an estimate that the Kindle’s parts cost $210, and we saw an estimate that it was losing $50 per device.

Here’s the breakdown from UBM:

chrt

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Source: http://www.businessinsider.com/new-estimate-amazon-kindle-cost-2011-10


With Amazon only charging $200 per Kindle Fire, it’s widely assumed the company is taking a major loss on each device sold.

That might not be the case, after all, according to a new estimate of the cost of Kindle parts by UBM TechInsights, which says the Kindle Fire’s parts are $150 in total. This would suggest Amazon is breaking even, or turning a profit on each Kindle sold.

Obviously, a Kindle Fire is more than parts. It has to pay people to put to them together, it has to pay for shipping, storage, etc. UBM TechInsights doesn’t have an estimate for those costs.

For a point of comparison, UBM estimates the iPad’s components cost $270 for a wireless version, and the BlackBerry PlayBook’s components cost $170 for a 16GB version.

Previously we saw an estimate that the Kindle’s parts cost $210, and we saw an estimate that it was losing $50 per device.

Here’s the breakdown from UBM:

chrt

Please follow SAI: Tools on Twitter and Facebook.

Join the conversation about this story »

See Also:




drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Source: http://www.businessinsider.com/chart-of-the-day-android-vs-ios-2011-9

New smartphone buyers are overwhelmingly choosing Android phones in comparison to iPhones and BlackBerrys, new data from Nielsen reveals.

Below you can see Nielsen’s subscriber share numbers. On the left are the total subscriber share numbers. On the right is the subscriber share numbers for the three months ended in August, which is a better predictor of the future of the market.

As you can see, in the three month period 56% of buyers opted for Android, versus just 28% for Apple. Rough for Apple, but if there’s a positive in there, it’s that Apple’s subscriber share is holding steady while Android eats up BlackBerry share and share from “other”.

But, with the iPhone hitting Verizon, we thought Apple would be in better shape in the U.S. Maybe once the iPhone 5 arrives, we’ll see a tilt? Or, maybe Android keeps running away with this thing.

chart of the day, operating system share, september 2011

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Source: http://gizmodo.com/5844135/does-50-million-users-and-a-1269-traffic-increase-mean-google-%252B-is-now-relevant

Does 50 Million Users And a 1269% Traffic Increase Mean Google + Is Now Relevant? Google + went public last week and its growth has been explosive. So explosive, it has some people wondering if it’s time to take closer look at the social network.

According to Experian Hitwise, traffic to Google+ climbed to 15 million this week, a 1269 percent growth from the 1.1 million visits the week before. And this figure only includes desktop visits, it doesn’t count mobile traffic from Android and iOS devices or people who visit by clicking on the black Google + toolbar.

Traffic is only one metric. Subscriber base is also important and a recent estimate from Paul Allen suggests Google + is adding two million new users each day and now has a subscriber base of almost 50 million users.

Admittedly, these numbers pale in comparison to Facebook, which has 800 million users and is the undeniable King of the Social networking hill. But you have to wonder about the up and coming Google +. Is it time to steal away from Facebook and Twitter and invest some social networking time into Google’s growing network? I’m starting to think it is. [ReadWriteWeb and Paul Allen]


drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Source: http://www.engadget.com/2011/07/12/idc-tablet-shipments-drop-28-percent-in-q1-2011/

IDC: tablet shipments drop 28 percent in Q1 2011

Whether you believe we’re living in a post-PC world or not, there’s no denying the overwhelming growth of tablets in the past few years. Just this March, IDC put out figures saying 2010 saw the sale of 18 million tablets, but despite the recent boom, the outfit’s now reporting a 28 percent drop in tablet shipments in Q1 2011, bringing first quarter worldwide shipments to 7.2 million. IDC’s latest report points to “slower consumer demand, overall economic conditions, and supply-chain constraint,” but nonetheless estimates that total tablet sales will reach 53.5 million by year’s end, up from IDC’s original estimate of 50.4 million. Once again, Apple’s come out on top of the slate game, with the iPad 2 leading the market, despite its own dip in shipments. E-readers have apparently also seen a decline in the first quarter, with shipments dipping to 3.3 million units. Despite a slow start to the year, however, IDC’s optimistic about future sales, but you don’t have to take our word for it — full PR awaits you after the break.

Continue reading IDC: tablet shipments drop 28 percent in Q1 2011

IDC: tablet shipments drop 28 percent in Q1 2011 originally appeared on Engadget on Tue, 12 Jul 2011 21:03:00 EDT. Please see our terms for use of feeds.

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Source: http://www.businessinsider.com/chart-of-the-day-cost-of-an-app-2011-7

Last week Apple announced that its 200 million iOS users have downloaded 15 billion applications.

How much money money is Apple making from those 15 billion downloads? Apple wasn’t so forthcoming about that, so we’ll have to rely on this estimate from Piper Jaffray analyst Gene Munster.

Munster says the average selling price of an app in the App Store is $1.44. Of that Apple nets $0.18 after you account for credit card fees and storage/delivery costs.

Since the App Store launched, Apple has earned a net profit of $538 million on paid app sales, estimates Munster. It has spent an additional $246 million on storing and delivering free apps, says Munster, suggesting Apple’s true profit is just $292 million.

Of course, that’s the narrow way of looking how much Apple is making from the App Store. Apple’s vibrant app ecosystem has helped it sell millions of iPhones, iPads, and iPod Touches, helping it earn billions in profits.

chart of the day, cost of an app, july 2011

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SOURCE: http://www.emarketer.com/blog/index.php/numbers-major-media-ad-spending/

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Behind the Numbers: US Major Media Ad Spending

Posted By: Nicole Perrin

eMarketer’s major media ad spending projection is the result of a comprehensive analysis of myriad elements related to the ad spending market. We use both bottom-up and top-down approaches for the estimates and projections.

  • Top-down approach: Marketing and advertising expenditures are often budgeted as a whole and allocated to different media based on needs and interests. We analyze macro-level factors that are closely associated with overall marketing and advertising budget growth, such as GDP, consumer expenditures, unemployment rates, etc. In addition, we take into consideration the historical trends of the advertising market and how each medium contributes to the grand total
  • Bottom-up approach: For each medium, we examine the historical trends of ad spending in the medium, consumption trends, and how the medium is faring in relationship with other media. To get a more solid picture of the ad spending trends, we also keep track of the performance of key players and the overall financial situations of the key advertisers and industries within the medium.
  • Numerous sources: Following eMarketer tradition, we also analyzed hundreds of datapoints from some 30 research firms and other organizations that track ad spending on TV, the internet, newspapers, magazines, radio and directories. Tracking these statistics over a period of several years provides a detailed picture of ad spending across major media. All data is normalized to account for differences in methodology and inclusions. Some firms attempt to measure the size of the market through reports of company earnings, while others rely on rate cards or agency billings. By examining a variety of figures and the available information on how they were compiled, eMarketer makes estimates that take all sides of the market into account.
  • Reliable benchmarks: In looking into all the sources, we are able to identify reliable benchmark sources for our projections of several media. The sources whose data we benchmark our projections against are: Newspaper Association of America (NAA) for newspaper advertising,Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) for online advertising, Outdoor Advertising Association of America (OAAA) for outdoor advertising, and Radio Advertising Bureau(RAB) for radio advertising.
  • Segmented estimates: Lastly, for all the core media ad spending, we have segmented the online portion of the ad spending figures from the total ad spending figures. By doing this, we are able to avoid double-counting and come up with the total major media ad spending figures, as the online portions for all the traditional media are counted in the online ad spending category. Most importantly, a separate estimate and projection of advertising revenues that the traditional media companies might generate through online venues could provide some insight into whether they can survive the digital transition or not.
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    UPDATE: Nearly two in five CMOs say their biggest challenge is “integrating and tracking multiple channels,” according to a recent survey by Aprimo and Argyle Executive Forum. In light of that finding, I thought I’d reprise a column that I wrote last year and use it to discuss correlating relative ROI (define) across channels like TV, print, radio, and online banner ads.

    Lift in search volume for particular terms – like non-generic brand names – is useful because it indicates that the target customers not only saw the ads, but also remembered them and then took action. It is a better metric than those that only estimate whether ads were even seen or heard – i.e., reach and frequency-based metrics. This even works well for online banner or branding campaigns because it is not the click-through from those ads that we are concerned with, it is the lift in search volume that indicates interest and intent. The habit of search by modern users is now commonplace; as they all go online to look for additional information before making a purchase decision, we now have a universally applicable metric to correlate the effectiveness (and thus the relative ROI) of advertising across channels.

    What about absolute ROI? We’ve got that covered too. Beyond lift in search volume, with proper analytics on online destinations, advertisers can track where customers came from, calculate how many took desirable actions like completing a purchase or printing a coupon (for items purchased offline). With these metrics, advertisers can correlate with other known data such as conversion rates of coupons, etc., to derive real-world ROI, scientifically. Obviously there are nuances and caveats, but if applied carefully these methods can help CMOs overcome what keeps them up at night.

    Read More:  How to Use Search to Calculate the ROI of Awareness Advertising

    Erik_SontumClickZ: How to Use Search to Calculate the ROI of Awareness Advertising. http://bit.ly/ardDy5 via @tomtsinas #merkevare

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    Carroll_PowellRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    hilloupayjouRT @travelwithdayo: Solid article on how to use Search to Calculate Ad Awareness ROI: http://bit.ly/aHqGQV #SEO #Advertising

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    RobHerremaRT @clickz How to Use Search to Calculate the ROI of Awareness Advertising – ClickZ http://bit.ly/7zp3FE

    chead95Good article, but Search misses other brand relationships – RT @clickz Using Search to Calculate ROI of Awareness Ads-http://bit.ly/7zp3FE

    doughayRT @clickz How to Use Search to Calculate the ROI of Awareness Advertising – ClickZ http://bit.ly/7zp3FE

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    KristenShueRT @TomPick: RT @clickz How to Use Search to Calculate the ROI of Awareness Advertising – ClickZ http://bit.ly/7zp3FE

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    joskouiHow to Use Search to Calculate the ROI of Awareness Advertising. #Search, #ROI, #Marketing, #Advertising http://bit.ly/7zp3FE

    followtorontoRT @tomtsinas: How to Use Search to Calculate the ROI of Awareness Advertising | http://bit.ly/ardDy5

    vidaimaginariaHow to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou @eMarketer

    conversionationHow to Use Search to Calculate the ROI of Awareness Advertising – ClickZ http://ow.ly/1QSFR – very interesting for the integrated thinkers

    micheleguidoRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    ChrissyZhouLeverage search marketing to boost up your bottom line http://www.clickz.com/3633054

    AdvertisingPRCalculate the #ROI of Awareness #Advertising through #Search http://bit.ly/99y2HG

    pweiderholmRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    oleagaRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    travelwithdayoSolid article on how to use Search to Calculate Ad Awareness ROI: http://bit.ly/aHqGQV #SEO #Advertising

    kingstonjrGreat article. RT @clickz How to Use Search to Calculate the ROI of Awareness Advertising – ClickZ http://bit.ly/7zp3FE

    telerobRT @digeratti: RT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    digerattiRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    tomtsinasHow to Use Search to Calculate the ROI of Awareness Advertising | http://bit.ly/ardDy5

    AgeSluisRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    Slingshot_SEORT @eMarketer How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    gailtwistRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    pathamilton3How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG

    iancsouzaUsando mecanismos de buscas para ajudar no cálculo de ROI de publicidade tradicional. Útil! http://bit.ly/99y2HG (via @eMarketer e @acfou )

    micklalalaHow to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou via @eMarketer

    cxdigitalRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

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    RobertoCarrerasRT @eMarketer: How to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    eMarketerHow to Use Search to Calculate the ROI of Awareness Advertising - http://bit.ly/99y2HG RT @acfou

    jrmostellerRT @clickz How to Use Search to Calculate the ROI of Awareness Advertising – ClickZ http://bit.ly/7zp3FE

    acfouCMOs bemoan inability to track ROI across channels - http://bit.ly/bAM4gu; lift in search volume can solve that - http://bit.ly/g5FUu

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