Posted by: Olga Kharif on October 23, 2009
It looks like Amazon may be dropping Sprint Nextel as the primary wireless service provider for its Kindle e-reader device. Its new international Kindle, which can download e-books in the U.S. and more than 100 other countries, is powered by AT&T. While Sprint continues to support and sell Kindle DX, that device, which features a larger display, is $230 more expensive than the international Kindle and, thus, is likely to enjoy lower sales. And some analysts believe the DX may soon be phased out.
That’s bad news for Sprint, and great news for AT&T, Sanford C. Bernstein analyst Craig Moffett writes in today’s note. He figures the Kindle will drive 1 million Kindle users to AT&T — net subscriber additions that Sprint will lose out on. Moffett estimates that Sprint makes about $5 per each subscriber addition and $2 per every e-book downloaded onto Kindle over its networks. That’s not very much, but still; Sprint, which has been bleeding subscribers for months, need every additional customer it can get. I’ve not heard back from Sprint or Amazon.com yet.