Wasn't the Kindle released only in the last few days of the quarter?
I was just thinking that same thing. But they would have startup costs. Apple always tempers their guidence when new products are expected, attributing lower margins to these costs. I haven paid attention to Amazon's guidence, so I done know exactly what they had said, other than they expected lower net this past quarter. They expect a possible loos next.
Consumers are not stupid. You get what you pay for. If you want good food, you pay more. If you want a good education, you pay more. If you want a nice house, you pay more. If you want good technology, you pay more. If you want a $25 netbook, then you can live in poverty in India. Part of bettering yourself is to strive for something better. If you shop at Walmart your whole life, then you will have nothing better to offer your children when you die than Walmart items.
This is unequivocally the dumbest post I've ever read on here. I've never once heard people dismiss things based only how much they cost.
This is unequivocally the dumbest post I've ever read on here. I've never once heard people dismiss things based only how much they cost.
While it is silly to dismiss something solely on the basis of its price, if you plot quality (by whatever standard you wish to measure it) against price, there is clearly a correlation.
A lot of comments here sound a lot like what people said about Android and the iPad when it launched.
I'm waiting for the next iPad but I can fully see the appeal of the KF, especially to anybody already sourcing content from Amazon. It's a decent yet cheap media consumption device. This is exactly what most people want.
The execution is brilliant too. They get the OS for free and strip Google out of it. Contrary to popular belief they aren't fragmenting the OS either. They used Gingerbread because Google didn't release Honeycomb and Ice Cream Sandwich wasn't out yet. I expect they'll upgrade to ICS next year so that developers can get more APIs. Ironically, because Amazon can upgrade all its devices, it may see the newest and best Android apps on here.
First of all, I love my iPad2. Coupled with MobileMe and now iCloud, it allows me to manage appointments, enter contacts, take notes, etc. Sync them with the iPhone and iMac. and besides that Filemaker Go allows me to work with my FM11 database resident on my iMac. I'm in business.
Allow me to gloat, second. When the Kindle Fire had the center of attention pre-iPhone 4s for all about 2 seconds, we had to hear from all of the press and all of the Kindle Fire fanatics that the Kindle Fire would DESTROY the iPad, that the Kindle Fire set the price point for tablets in the future, that Jeff Bezos would be the next Steve Jobs, blah, blah, blah.
Now, gee, no shit, Amazon is following the same failed strategy as the netbook. Flood the market with OK quality product at a low price. Watch your margins shrink.
Oh wait, though, they would make it back on content sales. But yet again, you have another dumbfuck company looking at the wrong target. IT'S NOT CONTENT THAT MAKES APPLE RICH, IT'S THE HARDWARE, DUMMIES!!! When will these companies learn.
Steve (RIP) said it best, "They just don't get it."
Well excuse me- it's music iTunes content that made the iPod and lack of movie/ video content that has kept the ATV as a lonely hobby. Most people have no idea what the hell an Apple TV is- have you ever even seen a commercial for it?
This isn't the first time Jeff Bezos was predicted doom and gloom. This Fire will sell like hotcakes- perfectly marketed nowwithn TV advertising in time for holiday sales.
A lot of comments here sound a lot like what people said about Android and the iPad when it launched.
I think most people can understand the appeal, from the (potential) consumer end. What I, and others, are questioning is how exactly Amazon plans on making money.
If it's true that they are selling each Fire at a loss, then they have to make-up for that loss through profits that are driven by someone owning the Fire.
I don't know enough about Amazon's business to know if this is possible, likely, or whatever. I also don't know if there are enough untapped markets in which Amazon can use the Fire (where they couldn't have relied on simply making money their old fashioned way). I just don't know.
But selling a piece of hardware at a loss, and hoping that people will gobble up content for a small margin, thus recouping the initial loss and leading to profits ... that sounds like at least a semi-dangerous plan, in this particular market. Doesn't it?
But kindle is suitable for vocational and holiday tours like 2 or 3 weeks time.
The iPad outlasts the Kindle Fire. You're referring to the eInk-based Kindles though the article is referring to the Kindle Fire eroding Amazon margins.
Comments
Wasn't the Kindle released only in the last few days of the quarter?
I was just thinking that same thing. But they would have startup costs. Apple always tempers their guidence when new products are expected, attributing lower margins to these costs. I haven paid attention to Amazon's guidence, so I done know exactly what they had said, other than they expected lower net this past quarter. They expect a possible loos next.
Consumers are not stupid. You get what you pay for. If you want good food, you pay more. If you want a good education, you pay more. If you want a nice house, you pay more. If you want good technology, you pay more. If you want a $25 netbook, then you can live in poverty in India. Part of bettering yourself is to strive for something better. If you shop at Walmart your whole life, then you will have nothing better to offer your children when you die than Walmart items.
This is unequivocally the dumbest post I've ever read on here. I've never once heard people dismiss things based only how much they cost.
This is unequivocally the dumbest post I've ever read on here. I've never once heard people dismiss things based only how much they cost.
While it is silly to dismiss something solely on the basis of its price, if you plot quality (by whatever standard you wish to measure it) against price, there is clearly a correlation.
I'm waiting for the next iPad but I can fully see the appeal of the KF, especially to anybody already sourcing content from Amazon. It's a decent yet cheap media consumption device. This is exactly what most people want.
The execution is brilliant too. They get the OS for free and strip Google out of it. Contrary to popular belief they aren't fragmenting the OS either. They used Gingerbread because Google didn't release Honeycomb and Ice Cream Sandwich wasn't out yet. I expect they'll upgrade to ICS next year so that developers can get more APIs. Ironically, because Amazon can upgrade all its devices, it may see the newest and best Android apps on here.
First of all, I love my iPad2. Coupled with MobileMe and now iCloud, it allows me to manage appointments, enter contacts, take notes, etc. Sync them with the iPhone and iMac. and besides that Filemaker Go allows me to work with my FM11 database resident on my iMac. I'm in business.
Allow me to gloat, second. When the Kindle Fire had the center of attention pre-iPhone 4s for all about 2 seconds, we had to hear from all of the press and all of the Kindle Fire fanatics that the Kindle Fire would DESTROY the iPad, that the Kindle Fire set the price point for tablets in the future, that Jeff Bezos would be the next Steve Jobs, blah, blah, blah.
Now, gee, no shit, Amazon is following the same failed strategy as the netbook. Flood the market with OK quality product at a low price. Watch your margins shrink.
Oh wait, though, they would make it back on content sales. But yet again, you have another dumbfuck company looking at the wrong target. IT'S NOT CONTENT THAT MAKES APPLE RICH, IT'S THE HARDWARE, DUMMIES!!! When will these companies learn.
Steve (RIP) said it best, "They just don't get it."
Well excuse me- it's music iTunes content that made the iPod and lack of movie/ video content that has kept the ATV as a lonely hobby. Most people have no idea what the hell an Apple TV is- have you ever even seen a commercial for it?
This isn't the first time Jeff Bezos was predicted doom and gloom. This Fire will sell like hotcakes- perfectly marketed nowwithn TV advertising in time for holiday sales.
A lot of comments here sound a lot like what people said about Android and the iPad when it launched.
I think most people can understand the appeal, from the (potential) consumer end. What I, and others, are questioning is how exactly Amazon plans on making money.
If it's true that they are selling each Fire at a loss, then they have to make-up for that loss through profits that are driven by someone owning the Fire.
I don't know enough about Amazon's business to know if this is possible, likely, or whatever. I also don't know if there are enough untapped markets in which Amazon can use the Fire (where they couldn't have relied on simply making money their old fashioned way). I just don't know.
But selling a piece of hardware at a loss, and hoping that people will gobble up content for a small margin, thus recouping the initial loss and leading to profits ... that sounds like at least a semi-dangerous plan, in this particular market. Doesn't it?
But kindle is suitable for vocational and holiday tours like 2 or 3 weeks time.
The iPad outlasts the Kindle Fire. You're referring to the eInk-based Kindles though the article is referring to the Kindle Fire eroding Amazon margins.