It's 40% of the iPad's price, but it's also only 40% of the size, and has about 40% of the features. Together, that may be enough to satisfy some. It also my wet their thirst for the real thing.
I can see a scenario with people dropping $199 on the Kindle Fire when they wouldn't have splurged for the iPad, and then wanting a more sophisticated, refined, and more powerful device for their 2nd tablet purchase. For this reason I think Amazon needs to be working on a more suitable 10" tablet if they don't want to eventually lose customers to Apple.
Man, this guy's name must be remembered. This has got to be one of the most, if not THE most foolish claim by an "analyst" yet. And there are some doozies!
I need to get me one of these analysts jobs. These guys are always wrong and never get fired.
OOPS! I forgot an "analysts" job is just stock manipulation. My bad.
It's 40% of the iPad's price, but it's also only 40% of the size, and has about 40% of the features. Together, that may be enough to satisfy some. It also my wet their thirst for the real thing.
Netbooks price: ~$400, Feature rich laptop $1000 like a Macbook. <--divide both numbers by 2. What price points do you get?
They sell everything that they carry through the iPad.
It makes wonder why they think that people will spend $200 just so they can get Amazon's content. I'd say sell the shit out of the e-ink devices and forget about the Fire... but I'm no Bezos.
Hmmm... I just think that the target market is too small. It sounds to me that Amazon is making very little if anything* on these devices with the hope that enough people will buy them to affect their content sales. It'll be interesting to see if that turns out to be true.
* I won't say they are losing money on each device just to keep a few people happy.
This is what I don't understand. Apple claims that they don't make any money from iTunes sales. Amazon sells the same content, often at slightly lower prices. So, Amazon cannot be making much from its contents business. Amazon Prime at $79/mo is a fantastic deal for the customer. Must be a money loser for Amazon.
Now, Apple has 35% plus margins on its hardware sales. If Amazon will be selling the Kindle Fire at a loss, its entire contents business (including hardware) will be a money loser for quite some time.
Their strategy seems to be to increase share even if they lose money for a while. Pretty risky, I think.
Yeah, it's nonsense. Amazon doesn't make any money selling content. They turn a minor profit and I suspect it's mostly from AWS and Kindle. There's no way they're selling this device at a loss. They can sell it cheap because they made it cheap (7 inch display, no cameras, etc) and because they only sell direct.
I understand his caution given how badly they have been burned by predicting potential success for the previous competitors. I think he underestimates the potential of the fire. Amazon also hangs out in the top 10 of the Admired companies list. I was out-of-town yesterday and was going to try and convince my wife she wanted one when I got home. She had already pre-ordered. This is not some geek focused Android talet trying to make its way on specs alone.
I also don't think it matters to Apple. The customers may not have really been candidatesnfor the current iPad. I do think this locks everyone else out of the 7" space. If amazon and Apple play nice they can completely control their parts of the tablet market for years.
Amazon, like Apple, has a proud history of vocal detractors. Those people who all to quickly try and point out what is missing, instead of what is there. In the case of this story, I think being blind to the big picture is a fairly big deficiency for an analyst.
My top 3 electronics purchases in the past 20 years are my iPad 2, my kindle, and my slingox. Sling has unfortunately gone to crap since being taken over by a clueless company. Apple and Amazon are still going strong. Amazon struggle a bit with the original kindle. They had production problems, it was priced to high, it had a few software issues. With all tha, it was still great. They have come a long way.
P.S. I already pre-ordered my kindle touch, what a nice traveling companion for my iPad.
Quote:
Originally Posted by hmurchison
"We'll make it up in volume"
lol.
HP may as well keep selling the TouchPad at $99 indefinitely.
HP has no way to make revenue on the backend, Amazon has been doing exactly that for a couple years now. In any case, I don't think they are selling at a loss. Maybe a thin margin.
Yeah, it's nonsense. Amazon doesn't make any money selling content. They turn a minor profit and I suspect it's mostly from AWS and Kindle. There's no way they're selling this device at a loss. They can sell it cheap because they made it cheap (7 inch display, no cameras, etc) and because they only sell direct.
They only sell direct for now, but they dosell kindles in stores. I suspect it is not being sold at a loss, but Amazon is verge different than Apple. They are a retailer and used to making money on thin margins.
They also have somemcontent revenu streams Apple has yet to try and tap into, like streaming video.
So then why are Android phones outselling iOS phones at a greater than 2 to 1 margin? Are they all selling to poor people?
Whereas a year ago it was difficult to find a device under $200, these days it seems there are many more affordable options (even free) as long as you're signing a contract.
Android's wide reach is probably the reason for this, as it has increasingly been found on budget smartphones. That is the reason why Google's mobile operating system was able to log such quick growth.
They also have somemcontent revenu streams Apple has yet to try and tap into, like streaming video.
Amazon should offer their streaming service separate and not combined with the shipping. What if somebody doesn't buy stuff from Amazon and only wants the streaming service?
I don't buy stuff too often from Amazon anymore, since they started charging tax where I live.
Amazon should offer their streaming service separate and not combined with the shipping. What if somebody doesn't buy stuff from Amazon and only wants the streaming service?
I don't buy stuff too often from Amazon anymore, since they started charging tax where I live.
You do realise that you were supposed to pay that tax before Amazon started charging it (I'm assuming you are in the US)?
The Kindle Fire is a very good ebook reader, not an iPad competitor. Everyone focuses on the price, but conveniently leave out the smaller screen, lack of camera, etc. Samsung tried a 7 inch tablet and only sold a few, and it had many more features (but cost slightly more than the Fire).
The Fire will take market share from other Android tablets, but mostly the Nook. I would consider it as an ebook reader for my kids to use while I use an iPad, but then again I'd probably go for the lower price e-ink based Kindle. I don't see a Fire as a replacement or direct competitor to the iPad. The Fire occupies an odd market segment between e-ink kindles and full featured tablets.
I suspect all the new Kindles will do well in the marketplace as ereaders, as the iPad dominates the post-PC market.
You do realise that you were supposed to pay that tax before Amazon started charging it (I'm assuming you are in the US)?
I am in the US and I believe that tax should not be charged as long as the business is not physically located in the same state that somebody resides in. Each state has different rules in place about that. I use every legal loophole possible to avoid giving any more tax money to the corruptocrats than I must.
The lack of a camera is a problem? Seriously? How many people do you see walking around taking photos with their ipad without looking like a <insert any unfashionable term>? A front facing camera + mic, that I can understand (the ability to skype etc.). But just a normal camera?
Otherwise, the Fire will do well because it's Amazon and more importantly connected with all things Amazon.
The Kindle Fire is a very good ebook reader, not an iPad competitor. Everyone focuses on the price, but conveniently leave out the smaller screen, lack of camera, etc. Samsung tried a 7 inch tablet and only sold a few, and it had many more features (but cost slightly more than the Fire).
The Fire will take market share from other Android tablets, but mostly the Nook. I would consider it as an ebook reader for my kids to use while I use an iPad, but then again I'd probably go for the lower price e-ink based Kindle. I don't see a Fire as a replacement or direct competitor to the iPad. The Fire occupies an odd market segment between e-ink kindles and full featured tablets.
I suspect all the new Kindles will do well in the marketplace as ereaders, as the iPad dominates the post-PC market.
You can get a Samsung GT 7 free from Lowes if you buy a major appliance.
Comments
It's 40% of the iPad's price, but it's also only 40% of the size, and has about 40% of the features. Together, that may be enough to satisfy some. It also my wet their thirst for the real thing.
I can see a scenario with people dropping $199 on the Kindle Fire when they wouldn't have splurged for the iPad, and then wanting a more sophisticated, refined, and more powerful device for their 2nd tablet purchase. For this reason I think Amazon needs to be working on a more suitable 10" tablet if they don't want to eventually lose customers to Apple.
I need to get me one of these analysts jobs. These guys are always wrong and never get fired.
OOPS! I forgot an "analysts" job is just stock manipulation. My bad.
It's 40% of the iPad's price, but it's also only 40% of the size, and has about 40% of the features. Together, that may be enough to satisfy some. It also my wet their thirst for the real thing.
Netbooks price: ~$400, Feature rich laptop $1000 like a Macbook. <--divide both numbers by 2. What price points do you get?
They sell everything that they carry through the iPad.
It makes wonder why they think that people will spend $200 just so they can get Amazon's content. I'd say sell the shit out of the e-ink devices and forget about the Fire... but I'm no Bezos.
Hmmm... I just think that the target market is too small. It sounds to me that Amazon is making very little if anything* on these devices with the hope that enough people will buy them to affect their content sales. It'll be interesting to see if that turns out to be true.
* I won't say they are losing money on each device just to keep a few people happy.
This is what I don't understand. Apple claims that they don't make any money from iTunes sales. Amazon sells the same content, often at slightly lower prices. So, Amazon cannot be making much from its contents business. Amazon Prime at $79/mo is a fantastic deal for the customer. Must be a money loser for Amazon.
Now, Apple has 35% plus margins on its hardware sales. If Amazon will be selling the Kindle Fire at a loss, its entire contents business (including hardware) will be a money loser for quite some time.
Their strategy seems to be to increase share even if they lose money for a while. Pretty risky, I think.
Yeah, it's nonsense. Amazon doesn't make any money selling content. They turn a minor profit and I suspect it's mostly from AWS and Kindle. There's no way they're selling this device at a loss. They can sell it cheap because they made it cheap (7 inch display, no cameras, etc) and because they only sell direct.
I also don't think it matters to Apple. The customers may not have really been candidatesnfor the current iPad. I do think this locks everyone else out of the 7" space. If amazon and Apple play nice they can completely control their parts of the tablet market for years.
Amazon, like Apple, has a proud history of vocal detractors. Those people who all to quickly try and point out what is missing, instead of what is there. In the case of this story, I think being blind to the big picture is a fairly big deficiency for an analyst.
My top 3 electronics purchases in the past 20 years are my iPad 2, my kindle, and my slingox. Sling has unfortunately gone to crap since being taken over by a clueless company. Apple and Amazon are still going strong. Amazon struggle a bit with the original kindle. They had production problems, it was priced to high, it had a few software issues. With all tha, it was still great. They have come a long way.
P.S. I already pre-ordered my kindle touch, what a nice traveling companion for my iPad.
"We'll make it up in volume"
lol.
HP may as well keep selling the TouchPad at $99 indefinitely.
HP has no way to make revenue on the backend, Amazon has been doing exactly that for a couple years now. In any case, I don't think they are selling at a loss. Maybe a thin margin.
Yeah, it's nonsense. Amazon doesn't make any money selling content. They turn a minor profit and I suspect it's mostly from AWS and Kindle. There's no way they're selling this device at a loss. They can sell it cheap because they made it cheap (7 inch display, no cameras, etc) and because they only sell direct.
They only sell direct for now, but they dosell kindles in stores. I suspect it is not being sold at a loss, but Amazon is verge different than Apple. They are a retailer and used to making money on thin margins.
They also have somemcontent revenu streams Apple has yet to try and tap into, like streaming video.
So then why are Android phones outselling iOS phones at a greater than 2 to 1 margin? Are they all selling to poor people?
Whereas a year ago it was difficult to find a device under $200, these days it seems there are many more affordable options (even free) as long as you're signing a contract.
Android's wide reach is probably the reason for this, as it has increasingly been found on budget smartphones. That is the reason why Google's mobile operating system was able to log such quick growth.
http://www.pcworld.com/article/23482...tml#tk.mod_rel
They also have somemcontent revenu streams Apple has yet to try and tap into, like streaming video.
Amazon should offer their streaming service separate and not combined with the shipping. What if somebody doesn't buy stuff from Amazon and only wants the streaming service?
I don't buy stuff too often from Amazon anymore, since they started charging tax where I live.
Amazon should offer their streaming service separate and not combined with the shipping. What if somebody doesn't buy stuff from Amazon and only wants the streaming service?
I don't buy stuff too often from Amazon anymore, since they started charging tax where I live.
You do realise that you were supposed to pay that tax before Amazon started charging it (I'm assuming you are in the US)?
The Fire will take market share from other Android tablets, but mostly the Nook. I would consider it as an ebook reader for my kids to use while I use an iPad, but then again I'd probably go for the lower price e-ink based Kindle. I don't see a Fire as a replacement or direct competitor to the iPad. The Fire occupies an odd market segment between e-ink kindles and full featured tablets.
I suspect all the new Kindles will do well in the marketplace as ereaders, as the iPad dominates the post-PC market.
You do realise that you were supposed to pay that tax before Amazon started charging it (I'm assuming you are in the US)?
I am in the US and I believe that tax should not be charged as long as the business is not physically located in the same state that somebody resides in. Each state has different rules in place about that. I use every legal loophole possible to avoid giving any more tax money to the corruptocrats than I must.
Do you believe this? How much storage will be needed?
No storage will be needed at all. It can all be accessed through Amazon's cloud service.
Otherwise, the Fire will do well because it's Amazon and more importantly connected with all things Amazon.
The Kindle Fire is a very good ebook reader, not an iPad competitor. Everyone focuses on the price, but conveniently leave out the smaller screen, lack of camera, etc. Samsung tried a 7 inch tablet and only sold a few, and it had many more features (but cost slightly more than the Fire).
The Fire will take market share from other Android tablets, but mostly the Nook. I would consider it as an ebook reader for my kids to use while I use an iPad, but then again I'd probably go for the lower price e-ink based Kindle. I don't see a Fire as a replacement or direct competitor to the iPad. The Fire occupies an odd market segment between e-ink kindles and full featured tablets.
I suspect all the new Kindles will do well in the marketplace as ereaders, as the iPad dominates the post-PC market.
You can get a Samsung GT 7 free from Lowes if you buy a major appliance.
Camera zooms in past a sign which reads "Outback Village: Assisted Living for your Golden years."
The camera now enters into a room, filled with a bunch of elderly gentlemen sitting in rocking chairs.
One of the elderly men begins swearing while using what looks to be some kind of miniature plasticky tablet.
Old Man: "f@#%@#$g mini iPad! I dont see what all the fuss is about!"
Aging Crocodile Dundee: "Thats not an iPad. [smirks, and whips out a glistening Apple iPad] This is an iPad!!!
Cue Crocodile Dundee Theme Song.
How long before we see an Amazon Fire with Special Offers? $169.99. Place your bets.
Black Friday - $149.99
No storage will be needed at all. It can all be accessed through Amazon's cloud service.
What is the Amazon cloud made of? Do you really think there are 16 million commercially available song created by human beings?