Thecould generate revenue of $305 million and gross profit of up to $70 million for Amazon this year, according to estimates made by investment bank Collins Stewart.
The estimates are just the latest heady Wall Street predictions for the Kindle 2, Amazon's digital book reader. Last month, a Citigroup analyst published a report that predicted the Kindle 2 would generate $1.2 billion in revenue by 2010.
Amazon hasn't broken out financial numbers for the Kindle 2, which made its debut last month.
Collins Stewart estimates that the device will see sales of $1.6 billion and $400 million in gross profit by the 2012.
"Kindle not only removes multiple costs and inefficiencies from the current value-chain for books (print & fulfillment cost, backorder risk, and inventory management)," the bank wrote, "but also increases propensity to buy more books/content and other adjacent products."
Collins Stewart also compared the Kindle 2 to the Sony eBook Reader in 13 different parameters and concluded: "Except for (the) touch-screen and built-in reading light offered by Sony, the Kindle is a much better device. More importantly, due to Amazon's focus/expertise in books/content, Kindle provides not only the largest repository of eBooks/content but also dozens of user-friendly features/functionality."