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Lock & home screen ads aid Amazon's aggressive pricing of Kindle Fire HD

post #1 of 147
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Amazon's new Kindle Fire HD undercuts the competition by presenting advertisements to users on both the device's lock screen and home screen, helping to subsidize its low price.

Fire


Customers who buy a Kindle Fire HD will receive "special offers and sponsored screensavers" on the device. Amazon has said that the advertisements display on the lock screen and in the lower left-hand corner of the home screen, but they will not interrupt use of the device.

The "Kindle with Special Offers & Sponsored Screensavers" is only available in the U.S., which makes international availability and pricing of the new Kindle Fire HD unclear.

Advertisements presented on the Kindle Fire HD will include movie, music and book covers for upcoming titles. Customers will also be shown deals for digital content, such as top-rated Kindle books for $1, or $5 to spend on the Amazon MP3 store.

Amazon also said it will offer customers discounted pricing on consumer electronics. One potential advertisement would be to save up to $500 on select HDTVs.

Fire Ads


Unlike with the e-ink-based Kindles, which allow customers to pay extra to remove advertising from their device, it does not appear that a "Without Special Orders" model of the Kindle Fire HD is available.

At his company's press conference on Thursday, Amazon Chief Executive Jeff Bezos made a clear distinction between his company and Apple, noting that Amazon offers customers and makes money off of "services" rather than "gadgets." Amazon's intent with its Kindle hardware lineup is to push e-books and other digital ? as well as physical ? content sold through the online retailer.

"People don't want gadgets anymore," Bezos said on Thursday. "They want services."

Amazon's business model is of course very different from Apple, which achieves strong margins on its hardware sales, while executives have said that digital content sold through iTunes and the App Store is essentially a break-even business. While Amazon's hardware exists to sell goods, Apple uses apps, music and movies to enhance the ecosystem of its devices.

On Friday, Wall Street analyst Shaw Wu with Sterne Agee said he's concerned about Amazon's low-margin business model. Last year, it was believed that Amazon was actually losing money on each first-generation Kindle Fire it sold.

"We question the company's stance where it believes it can make profits on content is the right business model," Wu said, "as reselling someone else's content has historically proven to not be a very profitable venture."
post #2 of 147

The advertisements throughout Kindle's OS are advertised as a feature on Best Buy shelves.

 

A featurelol.gif


Edit: All right, Just_Me, if this is trolling, care to show pictures of Best Buy cards that don't show this? Or perhaps an intelligent, sourced argument as to why OS-level advertisements that cannot be removed or hidden are good? I'm willing to be shown that I'm wrong in not wanting to be spammed while using a device, and I'm willing to be shown that I'm wrong in wanting a device, too, but the latter will take some serious work. Amazon's deluded as all get out.


Edited by Tallest Skil - 9/7/12 at 8:30am

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #3 of 147

I wonder how long it will take hackers to jailbreak the device. Or maybe they won't even bother.

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post #4 of 147
Quote:
Originally Posted by Tallest Skil View Post

The advertisements throughout Kindle's OS are advertised as a feature on Best Buy shelves.

 

A featurelol.gif

 

I for one am glad that Apple doesn't copy features (like that especially).

 

Maybe Samsung will feel inspired to use the idea. I can only hope.

post #5 of 147

We all know someone will come up with a hack to allow the removal of all the ads, if they can hack the iphone with all the smart apple engineers who have failed to stop it, you know Amazon bright crews will be no match for the hackers. 

 

I will make this prediction, if the hackers do not come up a no ad solution, that just tells you it was not worth their time since not enough people are even interested in the product.

post #6 of 147
Quote:
Originally Posted by mstone View Post

I wonder how long it will take hackers to jailbreak the device. Or maybe they won't even bother.

You beat me to it. thought the exact same thing

post #7 of 147
Quote:
Originally Posted by AppleInsider View Post

"People don't want gadgets anymore," Bezos said on Thursday. "They want services."

Something tells me he hasn't given a citation for that. Why does he offer gadgets then?

Quote:
Originally Posted by Tallest Skil View Post

The advertisements throughout Kindle's OS are advertised as a feature on Best Buy shelves.

A featurelol.gif


Edit: All right, Just_Me, if this is trolling, care to show pictures of Best Buy cards that don't show this? Or perhaps an intelligent, sourced argument as to why OS-level advertisements that cannot be removed or hidden are good? I'm willing to be shown that I'm wrong in not wanting to be spammed while using a device, and I'm willing to be shown that I'm wrong in wanting a device, too, but the latter will take some serious work. Amazon's deluded as all get out.

Yeah, I didn't understand that either.

The previous ad subsidy on the Kindle was an option, where you can get the device ad-supported or not. Now, if this is true, if you want the device, you get the ads, no option to pay more without.

The web store supports your claim:
http://www.bestbuy.com/site/Amazon+-+Kindle+Touch+with+Special+Offers/2506155.p?id=1218425939738&skuId=2506155&st=kindle&cp=1&lp=2
Quote:
Product Features
Special offers
Special Offers & Sponsored Screensavers display on Kindle Touch when you're not reading.

Edited by JeffDM - 9/7/12 at 8:45am
post #8 of 147
Quote:
"People don't want gadgets anymore," Bezos said on Thursday. "They want services." - Jeff Bezos

 

Here I thought you were smart Jeff, people want both, people always want both.  

post #9 of 147
Originally Posted by Maestro64 View Post

I will make this prediction, if the hackers do not come up a no ad solution, that just tells you it was not worth their time since not enough people are even interested in the product.

 

Sounds good in practice, but even the first-gen iPhone got a native install of Android 1.6 (and 2.2 on the 3G). There's NO market for that, and it still happened… lol.gif

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #10 of 147

I think I'd rather pay more than go for something cheap and constantly be bombarded with ads.

post #11 of 147

 

THAT'S what it says! Thanks; I couldn't remember. 

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #12 of 147

Who are these people you speak of, Jeff?  The ones who don't want gadgets?

 

I admire Jeff Bezos, he's a great entrepreneur.  But he's out of his league on this, I'm afraid.

post #13 of 147
Quote:
Originally Posted by Maestro64 View Post

We all know someone will come up with a hack to allow the removal of all the ads, if they can hack the iphone with all the smart apple engineers who have failed to stop it, you know Amazon bright crews will be no match for the hackers. 

 

I will make this prediction, if the hackers do not come up a no ad solution, that just tells you it was not worth their time since not enough people are even interested in the product.

 

They may be able to root and format it with a base Android OS, but the drivers will never work quite right with the Amazon proprietary hardware components. The entire Amazon modified OS on the device is closely connected to the Amazon servers, and likely communicate to verify the authenticity of the software regularly while connected to the internet. The only way I see removing the ads and maintaining a functional Amazon device is if it operated in permanent Airplane mode, which would not be very useful.

 

For the price, it is more economical to buy a Google/Samsung/Motorola Tablet designed for Android then to try to hack this and get any real use from the buggy modification without Ads.

post #14 of 147
Quote:
Originally Posted by Tallest Skil View Post

The advertisements throughout Kindle's OS are advertised as a feature on Best Buy shelves.

 

A featurelol.gif


Edit: All right, Just_Me, if this is trolling, care to show pictures of Best Buy cards that don't show this? Or perhaps an intelligent, sourced argument as to why OS-level advertisements that cannot be removed or hidden are good? I'm willing to be shown that I'm wrong in not wanting to be spammed while using a device, and I'm willing to be shown that I'm wrong in wanting a device, too, but the latter will take some serious work. Amazon's deluded as all get out.

i've read some of the features are special coupons for Mac's. Like in saving hundreds of $$$

post #15 of 147
Quote:
Originally Posted by j1h15233 View Post

I think I'd rather pay more than go for something cheap and constantly be bombarded with ads.

I knew there was something fishy about this product. I wonder if the ads are sent to your device using up your data plan when on cellular.

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post #16 of 147
Quote:
Originally Posted by al_bundy View Post

i've read some of the features are special coupons for Mac's. Like in saving hundreds of $$$

It would be ironic if an ad was displayed for a discount on an iPad.

post #17 of 147
Quote:
Originally Posted by JeffDM View Post


Something tells me he hasn't given a citation for that.
Yeah, I didn't understand that either.
The previous ad subsidy on the Kindle was an option, where you can get the device ad-supported or not. Now, if this is true, if you want the device, you get the ads, no option to pay more without.
The web store supports your claim:
http://www.bestbuy.com/site/Amazon+-+Kindle+Touch+with+Special+Offers/2506155.p?id=1218425939738&skuId=2506155&st=kindle&cp=1&lp=2

A good Ad can be a great thing with lots of benefits.

post #18 of 147
sorry.. but jeff beszos is TROLL, on stage no less! he is an ***h*le right ? PEOPLE DONT WANT GADGETS. thats right ... LOL amazon sells GADGETS...
well, i am annoyed that he is bsing about apple selling gadgets... right... iPod iPhone iMac all gadgets?... but the reality is that apple has made it fortune by offering more than gadgets! the phones offered before the iPhone were "gadgets"... ie people tried live with them... but could not ... it was only a phone .
of course RIM's blackberry was the first phone that was livable with... yet was for business..
for every-day-life the iPhone is the ticket. and why it is king... and yes there are other "life phones" but only after Apple showed how to do it.

TL;DR. ... on stage jeff bezos is a wannabe "steve jobs"... a wanna be apple clone..

/rant...
post #19 of 147

Its already been confirmed that the advertising can be removed on these new kindles, so it really isn't a big deal...

post #20 of 147
Quote:
Originally Posted by mstone View Post

I knew there was something fishy about this product. I wonder if the ads are sent to your device using up your data plan when on cellular.

My bet is that they are all preloaded and updated with each software/OS update, so that the ads can still play continuously without an Internet connection.

post #21 of 147
Quote:
Originally Posted by Baka-Dubbs View Post

Its already been confirmed that the advertising can be removed on these new kindles, so it really isn't a big deal...

Link?

post #22 of 147

The presentation of targeted ads *MUST* be made an option that owners can turn on or off. I don't get the Amazon supporters that say things like, "Amazon has to make their money somehow!" or "It's not that intrusive.". Those people are missing the main points: one is that Amazon is a multi-billion dollar multi-national company, two is that Amazon is already charging up to $600 for their top end model, and three is that consumers will be constantly purchasing through Amazon's ecosystem thus earning them even more money. So now Amazon is going to present ads so they make money on the transactions and anything they charge third party advertisers?!

The presentation of ads has to be a consumer option. Frankly, I'm tired of companies that think of their customers as incremental revenue generating machines. Amazon needs to dial back their greed.

 

Oh, and to the person that mentioned being able to eliminate the ads. I just checked and Engadget posted this:

 

http://www.engadget.com/2012/09/07/amazon-confirms-yes-you-can-opt-out-of-ads-on-new-kindle-fire/

 

Evidently, Amazon has heard the complaints already, and they appear to be thinking of the mechanism/cost of eliminating the ads. That said, there is no information as to how to opt out of ads or how much it may cost to do that yet.

 

--DotComCTO


Edited by DotComCTO - 9/7/12 at 9:01am
post #23 of 147
The service is not of much use without the gadget.
post #24 of 147
This is an analogy only those that grew up in Britain will get I'm sure. It occurs to me that Apple is becoming like the BBC (British Broadcasting Corporation) while the rest are the ITV (Independent Television). The BBC had no advertising, was a closed eco system and the quality was awesome but it cost you a fee (read a premium) every year (well worth it IMHO). ITV is like American TV, a mix of good and bad but all with endless advertising interruptions.
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Enjoying the new Mac Pro ... it's smokin'
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post #25 of 147

The question is:

How long will consumers buy a device who's stated function is to advertise to said consumer to buy more products?

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post #26 of 147
Quote:
Originally Posted by Cloud30000 View Post

Link?

http://www.engadget.com/2012/09/07/amazon-confirms-yes-you-can-opt-out-of-ads-on-new-kindle-fire/

 

Actually a pretty funny article.

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post #27 of 147

Thanks once again Bezos for proving to everyone why the iPad remains on top.

He cheapens his product by cramming advertisements in the consumers' face.  If I go to a store and have this and an iPad side-by-side, seeing the crap the Kindle is trying to throw at me, guess which product I will get.  I'd rather have a clean, simple, ad-free tablet than what this joke is, even if I have to pay a little bit more.

Just wait.  Just like when the first Kindle Fire came out, it's sell like crazy for a month, then die off.  If an iPad mini is in the works, it'll put this Kindle in peoples dusty desk drawers.

Bezos should be ashamed of himself.  That's one reason I don't watch much TV anymore as I'm fed up with the constant advertisements every five minutes.


Edited by sflocal - 9/7/12 at 9:11am
post #28 of 147

Do the ads constantly being on the lock screen affect the battery life ;-)  And as already questioned, do the ads use up that killer $50 per year plan?

 

Agree with the poster who said he's trying to be Steve, too.  All Bezos is missing is a turtleneck at this point.  Well, that and a really, really great product.

post #29 of 147
Quote:
Originally Posted by Cloud30000 View Post

It would be ironic if an ad was displayed for a discount on an iPad.

why? amazon sells them. i was going to buy my apple TV from there but ended up going to best buy. amazon had them for $85 two weeks ago and now $93 with free 2 day shipping for prime members

 

i might even buy a new macbook pro from amazon this december

post #30 of 147
Quote:
Originally Posted by Cloud30000 View Post

Link?

 

This whole "link?" trend really needs to stop.  Its not like I am quoting some crazy statistic.  If you want a link, here is what you do. 

 

1.  Go to google, or bing, or yahoo, or altavista(are they even around anymore)

2.  Type in Kindle fire HD remove advertising

3.  Hit Go, Search, Bing, or whatever search button terminology the site uses

4.  Bunch of links magically appear. 

 

Since that is too difficult and I obviously love to make up stuff that could very easily be proven true/false by following the above steps, here is a link:

 

http://www.engadget.com/2012/09/07/amazon-confirms-yes-you-can-opt-out-of-ads-on-new-kindle-fire/

 

Let me know if you need more links....

post #31 of 147
Quote:
Originally Posted by JeffDM View Post

Something tells me he hasn't given a citation for that. Why does he offer gadgets then?
Yeah, I didn't understand that either.
How do you use these services without a gadget? Or does he think if a gadget is priced cheap enough it's no longer a gadget?
post #32 of 147

I am going to set up shop on eBay offering fully rooted Fire's with all the Amazon crapware removed.  Running pure Android 4.0.   I'm going to charge $25 per device.  And I'm going to make a killing 

 

Bezos didn't even mention the ads in his presentation.  What a dickhead move.  He claims he is aligned with consumers, then does not even mention that he is going to pimp them and their personal info out to the highest bidder.  That is such a Google move  

 

All from a company that made $7 million last quarter vs. Apple's $8,800 million  

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post #33 of 147
Quote:
Originally Posted by Baka-Dubbs View Post

 

This whole "link?" trend really needs to stop.  Its not like I am quoting some crazy statistic.  If you want a link, here is what you do. 

 

1.  Go to google, or bing, or yahoo, or altavista(are they even around anymore)

2.  Type in Kindle fire HD remove advertising

3.  Hit Go, Search, Bing, or whatever search button terminology the site uses

4.  Bunch of links magically appear. 

 

Since that is too difficult and I obviously love to make up stuff that could very easily be proven true/false by following the above steps, here is a link:

 

http://www.engadget.com/2012/09/07/amazon-confirms-yes-you-can-opt-out-of-ads-on-new-kindle-fire/

 

Let me know if you need more links....

No its called citing your sources to defend your argument.  I think you learn this concept in about grade 9.

post #34 of 147
Quote:
Originally Posted by Baka-Dubbs View Post

 

This whole "link?" trend really needs to stop.  Its not like I am quoting some crazy statistic.  If you want a link, here is what you do. 

 

1.  Go to google, or bing, or yahoo, or altavista(are they even around anymore)

2.  Type in Kindle fire HD remove advertising

3.  Hit Go, Search, Bing, or whatever search button terminology the site uses

4.  Bunch of links magically appear. 

 

Since that is too difficult and I obviously love to make up stuff that could very easily be proven true/false by following the above steps, here is a link:

 

http://www.engadget.com/2012/09/07/amazon-confirms-yes-you-can-opt-out-of-ads-on-new-kindle-fire/

 

Let me know if you need more links....

 

How'd you learn this magical "search" process?  Link please?

 

;-)

post #35 of 147

If you can't turn off the ads, then Amazon should sell the Kindle Fire HD for FREE!

post #36 of 147
Quote:
Originally Posted by winstein2010 View Post

If you can't turn off the ads, then Amazon should sell the Kindle Fire HD for FREE!

You will likely have to pay extra to remove the ads... lol

post #37 of 147
Quote:
Originally Posted by allenbf View Post

Who are these people you speak of, Jeff?  The ones who don't want gadgets?

I admire Jeff Bezos, he's a great entrepreneur.  But he's out of his league on this, I'm afraid.

But, what if he is right?

What if, instead of bombarding you with random ads, the OS and Amazon's servers could monitor your current interests and show you only [mostly] ads of interest -- helping [serving] you rather than spamming you?

Amazon's web site already tracks your interests, reminds you of them, and suggests other items that may be of interest to you.

Done properly, this could work as a personal shopper's assistant... Rather than a carnival barker!
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post #38 of 147
Quote:
Originally Posted by winstein2010 View Post

If you can't turn off the ads, then Amazon should sell the Kindle Fire HD for FREE!

Gadgets subsidized with ads is relatively new, but ad subsidized products and services that are not new. Magazines, newspapers, cable & satellite TV come to mind. You pay for the product or service, and you still pay by ad exposure.
post #39 of 147
Quote:
Originally Posted by mstone View Post

I knew there was something fishy about this product. I wonder if the ads are sent to your device using up your data plan when on cellular.

 Or perhaps pre-loaded in RAM or pre-designated storage space for the "OS". Either way, it's wasting what you've paid too little for.

When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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post #40 of 147

Wow, what an amazing feature! My iPad 3 doesn't have that! I'm fuming mad right about now! I'm mad as hell, and I'm not gonna take it anymore!

 

Every time that I go to the lock screen of my iPad, I always think to myself, wouldn't it be wonderful if there were ads popping up here? Why didn't Apple think of that? Apple really needs to start innovating before all of these innovative Android tablets come up with more and more great ideas.

 

Who the hell wants ads on their damn hardware devices? I mean, how poor do people have to be to be willing to put up with ads on hardware in order to save a buck or two on the device?

 

What's next for Android and Amazon tablets? I know, in addition to the ads, if you are willing to sign a contract and whore out your sister for 3 months, you will save 50% on the price of the tablet. Hurry up, before this special time limited offer expires. I've said that this before, but Android's demographic is clearly comprised of bums and cheap people.

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