HedgeFundLIVE — The last few day’s BKS has been getting killed after a light earnings report. The stock closed today at 12.70 after being as high as $18.90 a few weeks ago. I had forgotten about BKS as it had fallen out of grace and Betty sold the top in her PA, but, an interesting article today sparked my interest in the stock again:
As the exclusive provider of wireless service for the Kindle in the U.S., AT&T will offer the device beginning March 6 for $189, the same price charged by Amazon. Dallas-based AT&T won’t sell the cheaper Wi-Fi only version of the Kindle.
AT&T is promoting tablets, such as the Apple Inc. iPad, to generate revenue from sources other than mobile-phone contracts. The carrier may collect $3 to $4 a month from Seattle-based Amazon per each Kindle connected to its network, estimates Philip Cusick, a JPMorgan & Chase Co. analyst in New York.
“We believe we should have in our stores devices that we connect, whether it has our brand on it or not,” Glenn Lurie, AT&T’s emerging device president, said in an interview. “We think we’ll sell a few; it helps Amazon, it helps us.”
The Kindle accounted for 5 per cent of Amazon’s revenue in 2010, according to Aaron Kessler, an analyst at ThinkEquity LLC. The company may have sold more than 8 million of the devices in 2010, two people familiar with the matter said in December. Amazon doesn’t disclose Kindle sales.
With the kindle driving 5% of Amazon’s sales and AT&T starting to push Kindle in their stores I started thinking what could be the next move and who would benefit?
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