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August 11, 2008

News : Citigroup sees better Amazon Kindle sales


NEW YORK (Reuters) - Citigroup said on Monday that Amazon.com Inc's Kindle electronic reader appears to be selling much better than expected and could double a previous estimate for units sold this year, sending shares in the online retailer up 7 percent.

Citigroup said the Kindle could be one of the top gadget gifts during the upcoming holiday season, along with Apple Inc's newest iPhone.

Citigroup estimates Amazon will sell up to 380,000 Kindles in 2008, up from a previous forecast of 190,000. It expects Kindle-related revenue of $1 billion by 2010, compared with a previous view of $400 million to $750 million.

Amazon shares rose $5.25 to $85.76.

(Reporting by Michele Gershberg, editing by Gerald E. McCormick)

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