Amazon’s will sell 12 million Kindle Fires grabbing 15% of the tablet market in 2012, says Citi analyst Mark Mahaney.
This would be a significant achievement for Amazon, since almost every tablet not named “iPad” has been a total failure.
Below is a breakdown of how much revenue the Fire generates for Amazon and how much it loses. For what it’s worth, Mahaney might be conservative with his estimates. It appears that he’s not factoring in the introduction of a second Fire with a bigger screen and (hopefully) an improved operating system.
The funny thing here is that this is one of those cases where Amazon could actually make up for the losses with volume. If enough people buy the money losing Kindle Fires, they will buy more stuff from Amazon offsetting the hardware losses.