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Amazon.com (NASDAQ:AMZN): Current price $273.19
The senior analyst at ABI Research Aapo Markkanen has calculated that for Amazon to gain a 20-percent profit margin, it needs $10 in content sales per month from each Kindle Fire, from which would come $3 after its 30-percent cut, adding that this incremental $3 revenue would be required over the life of the hardware in order to maintain that margin. Further, Markkanen says that the combination of falling hardware prices over time and an increase in content sales could help the product line even more.
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