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The Kindle Fire is going to absolutely destroy the iPad in terms of profit generated. However, there is room for both devices on the market, and the iPad won't
by blake8086 15y ago
The Kindle Fire is going to absolutely destroy the iPad in terms of profit generated. However, there is room for both devices on the market, and the iPad won't be "killed" as the press likes to claim.
But Amazon has essentially built a magic portal that can instantly swap your money for anything they sell. Do you realize how much money someone can spend in 1 minute while sitting in a comfy chair with the Kindle? There's a huge list of "things people want" in Amazon's electronic goods inventory, even more in their real goods inventory, and they already have your credit card info ready for you to use.
Have you thought about what pages gain the most from the Silk browser? That's right, Amazon detail pages. You'll be able to browse amazon.com faster than ever before, and buy even more things.
Disclaimer: I worked at Amazon until October (and hold stock), but I am not revealing (or aware of) any confidential information regarding the Fire.
- btipling 15y agoIf they're selling the Fire at a loss, how are they going to destroy the iPad in terms of profit. Mind you I ordered a fire, so I hope to see it succeed.
- wanorris 15y agoI don't know that this is a correct analysis but the premise of the argument presented is that Amazon is taking a small loss up front, but in return they are effectively shipping you a cash register into which you keep depositing money for Amazon digital and physical goods. If this proves to be correct, then the Fire would be increasing Amazon's sales on other high-margin goods, and the money lost on the device could simply be considered a form of customer acquisition cost.
- jmelloy 15y agoMy $250 iTunes bill this month suggests Apple is also shipping you a cash register.