I had my doubts when I first heard about Kindle, but it seems to have gained a following and it does seem to be a useful gadget for those that read a good deal and travel.

In practical terms, that means that Mahaney has gone back and revisited his original estimates from last spring. He now thinks Amazon (AMZN) will sell 378,000 units this year, double his initial guess. And he thinks instead of being a $750 million business that accounts for 3% of the company's sales next year, the Kindle will be a $1.1 billion business that accounts for 4%.

 

What's changed? No specific data, Mahaney says, because getting real numbers out of Amazon is impossible, and the supply chain is pretty tightly wrapped, as well.

 

But he's seen lots of little data points: Better reviews of the device on Amazon, the fact that it remains on top of Amazon's best-seller list, etc

http://www.alleyinsider.com/2008/8/citi-yep-the-kindle-s-a-huge-hit-1-billion-for-amazon-in-2010-amzn-