91–100 of 111 posts
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AFAIK there is no substantial evidence that the Kindle Fire is being sold as a loss leader however I can imagine the profit margins are slim.
Given that no kindles fires have shipped, they haven't booked any revenue or costs for them yet, either.
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A tried and true strategy. That has worked for (in no particular order) : ATM's, Printers, Razors, Mobile Phones, Gaming Platforms and probably even cars in some cases. If Sony had cottoned onto this strategy, Beta would have been the worldwide video standard and they would have been paid back massively in royalties. Shifting hardware at a loss to lock in consumers is the oldest trick in the book. Nowhere is it more…
Its a tried and true strategy if there wasnt a better strategy. Amazon doesnt need to create their own hardware. They are doing just fine selling Ebooks via their iPad and android apps. Low overhead, more profit. Selling their own hardware does not provide any value add to the customers, all it does it reduce their margins and profit. People already buy ebooks via their apps. People are talking like this is a good mo…
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> Investors shouldn't be allowed to invest until they've purchased at least one product from Amazon. Seriously. My wife gets Amazon Prime for free through school. Within the first month I was looking for the best opportunity to buy stock. The service is quite literally amazing, and handing it out free to students is just damn genius. That's just one small thing on top of all the other things they do really well at.
I will second this. The free student prime has moved purchase of Amazon Prime from the "it seems cool but not worth category" to "must have" for me. You get things that you would normally have to run all over town to get with minimal effort. It's a huge time saver.
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They should do more for less, like magically store all 8 billion items they have in stock in the back of my car or something. Warehouses housing wares. How extravagant. Where's the innovation. (And to answer my sarcastic comment, the innovation is "order from your suppliers and have them ship directly to the customer, then you don't need warehouses". But the reason people pay Amazon's prices is because the item shows…
> Investors shouldn't be allowed to invest until they've purchased at least one product from Amazon. Seriously. My wife gets Amazon Prime for free through school. Within the first month I was looking for the best opportunity to buy stock. The service is quite literally amazing, and handing it out free to students is just damn genius. That's just one small thing on top of all the other things they do really well at.
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How about the $50 Amazon is losing per Kindle Fire sold?
A tried and true strategy. That has worked for (in no particular order) : ATM's, Printers, Razors, Mobile Phones, Gaming Platforms and probably even cars in some cases. If Sony had cottoned onto this strategy, Beta would have been the worldwide video standard and they would have been paid back massively in royalties. Shifting hardware at a loss to lock in consumers is the oldest trick in the book. Nowhere is it more…
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Crazy moves like "heavy spending on warehouses, data centers and digital-content offerings" An online store buying stock and building infrastructure !!!!! Crazy , they should be borrowing money and paying themselves bonuses before going bust - that's what Wall St wants
Wall Street share prices are not particularly high either.
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Crazy moves like "heavy spending on warehouses, data centers and digital-content offerings" An online store buying stock and building infrastructure !!!!! Crazy , they should be borrowing money and paying themselves bonuses before going bust - that's what Wall St wants
How about the $50 Amazon is losing per Kindle Fire sold?
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Crazy moves like "heavy spending on warehouses, data centers and digital-content offerings" An online store buying stock and building infrastructure !!!!! Crazy , they should be borrowing money and paying themselves bonuses before going bust - that's what Wall St wants
How about the $50 Amazon is losing per Kindle Fire sold?
First, you need to prove beyond any doubt that the Fire is being sold at a loss. Once you know this, set up some dummy stores and invest the billions of dollars you have laying around in buying as many as you can. Once you have them, put them all in a compactor. Make sure each one is destroyed without anyone having laid a finger on it. See how long Amazon can sell these things at a loss without making anything from them.
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This piece gives a run down of all the analysts claims, with some calculating a $50 profit instead but as you can imagine none of it is substantiated. http://news.cnet.com/8301-1023_3-20114722-93/amazon-kindle-f...
Interesting. To summarize, it looks like the $50 loss comes from an analyst comparing it to the iPad, whereas the $50 profit claim comes from a firm comparing it to the more-similar BlackBerry Playbook. The research firm that did a tear-down estimated it at about a $10 loss. In other words, no-one really knows, but it looks like they're probably closer to breaking even than chugger claims. Chugger is taking the worst…