Simply the Numbers: Breakdown of Amazon Phone Opportunity by SunTrust

In a report published Wednesday, SunTrust analyst Robert Peck commented that Amazon.com's AMZN potential phone launch could add more than $2 billion in revenue. Peck remarked on possible assumptions for the launch given a rumored partnership with AT&T T and 3D interactivity. Given that Amazon only partners with AT&T, SunTrust looks at possibilities of 5, 10 and 15 percent penetration into “3 buckets: Hardware (phone sales) opportunity, Incremental Prime Membership subscriptions, and Incremental products sales made by new Prime members.” Using SunTrust's modeled analysis, here is the breakdown of the revenue and gross profit opportunity given the different penetration levels per sector and as a total.