Market Overview

Breakdown Of Amazon Phone Opportunity By SunTrust

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In a report published Wednesday, SunTrust analyst Robert Peck commented that Amazon.com's (NASDAQ: 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 (NYSE: T) and 3D interactivity. Given that Amazon only partners with AT&T, SunTrust looks at possibilities of five, 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.

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UPDATE: Click here to view our quick update following the presentation and official press release from Amazon.

Click here to see some more highlights from the co.'s presentation.

Latest Ratings for AMZN

DateFirmActionFromTo
Jul 2015Stifel NicolausUpgradesHoldBuy
Jul 2015BarclaysUpgradesEqual-weightOverweight
Jul 2015Morgan StanleyMaintainsOverweight

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